Archive for December, 2013

A One Euro Government Will Rise Out Of Waves Of Sovereign, Corporate, and Banking Insolvency To Establish Regional Security, Stability And Sustainability In 2014

December 31, 2013

This article is posted in Google Docs format here

Financial Market Forecast for 2014

1) … I am not a classical economist, yet, this inquiring mind asks, Why doesn’t classical economic theory enjoy greater appeal in the US?  Perhaps there are a number of reasons.

1) the existence of a two party political system.

2) parents failing to grasp the importance of liberty and educate children in libertarian ethics.

3) a pursuit of the practical education in public schools during the Rothbard years.   

4) the great financial reward that came from employment created a prosperity that blinded the development of ethics.

5) the rapture theory held by Christians; that is that God will come to the rescue of individuals.  

6) ongoing development of the US as a global kick ass, might makes empire.

7) on going trade liberalization, and investment liberalization.

8) the Craig Willy post  ítor Constâncio, Vice-President of the ECB, on the real causes of the Euro crisis; which describes how eurozone integration aggravated financial speculation and eliminated national democracies’ tools for managing economic problems.

9) as knowledge grew, public unions grew in power to countermand the moral hazard of government.

10) the willingness of society to capitulate to psychiatrists and put psychopaths on SSI disability.

11) regulatory capture, ie Obamacare.

12) growing trade deficits and fiscal deficits.

13) US Federal Reserve intervention and mortgage financing by the GSE which promoted inflationism.

14) A free to choose floating currency system fathered by Milton Friedman, which resulted in the creation of the democratic nation state banker regime in 1971, and resulted in a 42 year period of living hegemonically.   

15) Rejection by most, or perhaps better said, failure to consider, the theories whose hypothesis centered around the concept, as Wikipedia relates, that only a free market produces the socially optimal equilibrium with regard to production of goods and services, such as the fundamental theorems of welfare economics and general equilibrium theory, which helped prove further that government intervention could only result in making society worse off (see Pareto efficient).

16) In answering the question “Why am I here” and “What am I to do”, a rejection by others of the concept that I am an entrepreneur managing the outcome of my life; and as such one fails to exercise ongoing discernment in a wise choice of friends, careers, recreation, and partners.   

17) The pessimistic Market Sanity report by Ron Paul This will all end in an economic collapse.

 

2) … There is an alternative to classical economics theory, it is dispensational economics theory, which presents that out of waves of Club Med sovereign, corporate, and banking insolvency, the Eurozone will become an epicenter of great democratic deficit, and will serve as a template for regional governance and totalitarian collectivism throughout the world.

Craig Willy posts The Eurozone’s democratic deficit: A reading list for the perplexed. And I focus on the Transparency International reading suggestion which relates “We are transferring ever-more power to the “democratic black hole” that is the ECB, making it “the most powerful [EU] institution.”

Please consider reading the Lukanyo Mnyanda and Anchalee Worrachate Bloomberg report Italy’s Bonds drop with Spain’s on concern ECB to limit support A Mario Draghi Mandate prevents lenders from using future loans it provides to buy sovereign debt.

The December 6, 2013, ECB Mario Draghi monetary policy Mandate, that prevents lenders from using future loans it provides to buy sovereign debt, establishes Mario Draghi as the EU’s sovereign monetary authority, specifically as the EU’s Seignior, that is top dog banker, who in minting money, takes a cut, and establishes the EU as a region of economic governance, having policies of diktat, and totalitarian collectivist schemes of debt servitude.  The Mario Draghi monetary policy Mandate establishes Mario Draghi as father of Eurozone regional governance.

The December 6, 2013, Mario Draghi monetary policy Mandate, means the end of low Treasury Debt Interest Rates in the EU; it terminates liberalism as both a paradigm and age; the democratic nation state and banker regime that was liberalism’s vessel of economic experience, has been sterilized, better said, destroyed as if by a neutron bomb, that leaves the structure intact, but obliterates all life inside. The ECB Draghi Mandate pivots the EU into authoritarianism as both a paradigm and age.

Now, business credit comes from EU’s Seignior, Mario Draghi, and sovereign credit comes from the sovereign debt market place, as it should have been all along, which means funding of Eurozone nation Treasury Debt, will be nada, nothing, and not forthcoming, as buyers of this debt already know that the PIIGS are insolvent sovereigns, and their banks are insolvent financial institutions.  The funding of nation state fiscal spending has been literally cut off by the ECB Mario Draghi December 6, 2013 Mandate. While seemingly to support creditworthy firms, the Mandate is the “genesis factor” that will introduce deep recession by eliminating the ECB OMT funding of the EU nation states fiscal budgets.

Fragile peripheral Eurozone nation states, Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, must look to the financial marketplace to purchase Treasury Debt.  Eurozone fiscal seigniorage, that is fiscal moneyness, that came through LTRO 1, 2, and OMT, has been dealt a lethal blow, and as a result, democracy nation state sovereignty will collapse overnight as a result of ECB Mario Draghi’s diktat that prevents lenders from using future ECB loans to buy sovereign debt.

New regional sovereignty has emerged in Europe. The Eurozone, as a region of economic governance, was fathered, that is has come into being, by the December 6, 2013, Mandate of the ECB’s Chairman.  Mario Draghi.  In announcing the Mandate that prevents lenders from using future loans the ECB provides to buy sovereign debt, Mario Draghi has destroyed liberalism’s fiat money, and has minted diktat money, that is money that comes by decree, and has announced Eurozone regional economic governance without any democratic constitution.  Eurozone regional economic governance has simply come into being through the word, will, and way of Mario Draghi; this establishes Mario Draghi as the EU’s Seignior in charge of regional monetary policy and regional credit.

Life under liberalism was an experience in a debt trade, EU, as is seen in the ongoing Yahoo Finance chart of European Financials, EUFN, NBG, DB, STD, IRE, as well as a currency carry trade, EUR/JPY, as is seen in the ongoing Yahoo Finance chart of Eurozone Stocks, SI, PHG, STX, ALU, ING, DSX, MT, and CCH, based upon the sovereignty of EU nation states, EWI, EWG, EFNL, EWN, EDEN, EIRL, GREK, PGAL, EWO, EWP, as presented in their ongoing Yahoo Finance Chart which produced a moral hazard based prosperity. Said another way, life under liberalism was a series of puts, as Forbes reported Bernanke doubles down on Greenspan Put, Larry Summers exhales in comment at the start of QE3.

Econobrowser posts All quiet on the southern front. After a wild ride in 2011-2012, interest rates have settled down on European sovereign debt. For now.

Life under authoritarianism is an experience in debt servitude; now, life is a series of calls, such as the call of the bond vigilantes of the Interest Rate On the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, was an extinction event, that destroyed fiat money, that is Aggregate Credit, AGG, and the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, as well as the Mario Draghi call to experience in monetary policies of regional governance, and totalitarian collectivist schemes of debt servitude, which establish austerity. AP reports related details Ireland faces more austerity as bailout era ends.

The December 6, 2013, Mandate of Mario Draghi is powering up the singular dynamo of regionalism for the purpose of regional stability, regional security, and regional sustainability. This dynamo replaces liberalism’s dynamos of creditism, corporatism, and globalism.

The ECB Chairman, Mario Draghi’s December 6, 2013 Mandate will have the effect of commencing the destruction of fiat wealth, that is Global Stock Investment, VT, Nation Investment, EFA, and Global Financial Investment, IXG; and will create a global economic recession, and is the “genesis factor” of a soon coming global credit bust and financial system breakdown, that being the deflationary bust, known as Financial Apocalypse, as presented in Bible prophecy of Revelation 13:3-4.

Authoritarianism is characterized by monetary deflation, that is credit deflation, AGG, BWX, EU, and currency deflation, DBV, CEW, FXE, all turning lower in value, stimulating investors to derisk out of fiat wealth, that is World Stocks, VT, as will be seen in the Risk Off ETN, OFF, rising in value, as investors derisk out of debt investments, and deleverage out of currency carry trade investments, which terminates global economic growth and global trade, and introduces economic recession where the beast regime of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, rules via diktat money so as to provide regional security, regional stability, and regional sustainability.

It has been God’s purpose from eternity past to make the Beast Regime, Revelation 13:1-4, also presented as the End Time Monster, Daniel 7:7, and presented as the Two Feet and Ten Toes Global Empire, Daniel 2:25-45, as a world wide empire replacing liberalism’s two iron legs of governance, these being the British Empire, and the US Dollar Hegemonic Empire.

Most assuredly the EU will be a type of revived Roman Empire, in the sense that it will have a European King like Charlemagne. The Sovereign’s shrewd ability to work in regional framework agreements, as foretold in Daniel 8:23, will assure a pan-European identity for all.  Like Charlemagne who abandoned the gold standard, and put all of Europe on the same silver currency, The Sovereign will work with The Seignior to establish diktat money; where his word will and way, will be the law of the land, replacing all constitutional law, national law, and historic precedent.

3) … This weeks news report illustrate the degree of sovereign, banking and social crisis in Eurozone.

Reuters reports from Milan, Italy, The oldest bank in the world is on the verge of collapsing. A delay to vital fundraising at Banca Monte dei Paschi di Siena  has increased the risk that Italy’s third biggest bank has to be nationalized, a move the government would like to avoid.

Shareholders led by the biggest investor in the bailed-out bank rejected plans for a 3 billion euro ($4 billion) share sale in January and postponed the capital raising until after May 12.

The bank’s chairman and its chief executive may resign following the unprecedented clash with the main shareholder in the Siena-based lender, a charitable banking foundation with close ties to local politicians.

The focus of attention now turns to Rome where both the economy ministry, which has oversight of banking foundations, and the Bank of Italy are closely following events.

The world’s oldest bank needs to tap investors for cash to pay back 4.1 billion euros in state aid it received earlier this year and avert nationalization after being hammered by the euro zone debt crisis and loss-making derivatives trades. The capital increase is part of a tough restructuring plan agreed with the European Commission in order to receive clearance for the state bailout.

A Treasury spokesman said the government’s priority was to give the bailout money back to taxpayers and it had no interest in nationalizing Monte Paschi, ANSA news agency reported on Sunday evening. Sources said the Treasury will continue to encourage all parties involved to find a solution, ANSA reported.

Monte Paschi Chairman Alessandro Profumo, an internationally respected banker who was formerly the chief of UniCredit,  said on Saturday he and chief executive Fabrizio Viola would decide whether to step down next month. A board meeting is expected around mid-January.

Profumo and Viola had already secured a pool of banks to guarantee the rights issue, but only if it was carried out by the end of January.They said the delay makes fundraising harder because of likely competition from other Italian and European lenders prompted to seek new capital by an upcoming sector health check, and could precipitate the Tuscan bank’s nationalization.

By forcing a postponement of the rights issue, the cash-strapped Monte dei Paschi foundation, whose stake in the bank is big enough to veto any unwanted decision, is hoping to win more time to sell down its 33.5 percent holding and repay its own debts. The foundation head Antonella Mansi said that carrying out the capital increase in January would massively dilute the foundation’s holding, leaving it with virtually nothing to sell to reimburse debts of 340 million euro.

John Rubino posts What Blows Up First? Part 1: Europe.  2013 was a year in which lots of imbalances built up but none blew up. The US and Japan continued to monetize their debt, in the process cheapening the dollar and sending the yen to five-year lows versus the euro.

China allowed its debt to soar with only the hint of a (quickly-addressed) credit crunch at year-end. The big banks got even bigger, while reporting record profits and paying record fines for the crimes that produced those profits. And asset markets ranging from equities to high-end real estate to rare art took off into the stratosphere.

Virtually all of this felt great for the participants and led many to conclude that the world’s problems were being solved. Instead, 2014 is likely to be a year in which at least some – and maybe all – of the above trends hit a wall.

It’s hard to know which will hit first, but a pretty good bet is that the strong euro (the flip side of a weakening dollar and yen) sends mismanaged countries like France and Italy back into crisis. So let’s start there.

The basic premise of the currency war theme is that when a country takes on too much debt it eventually realizes that the only way out of its dilemma is to cheapen its currency to gain a trade advantage and make its debts less burdensome. This works for a while but since the cheap-currency benefits come at the expense of trading partners, the latter eventually retaliate with inflation of their own, putting the first country back in its original box.

In 2013 the US and especially Japan cheapened their currencies versus the euro, which was supported by the European Central Bank’s relative reluctance to monetize the eurozone’s debt. The chart of the Euro, FXE, over the euro over the past six months, (shows a 5.6% gain; and the chart of the Yen, FXE, shows a 5.8% loss; the EUR/JPY closed at 145.00; and USD/JPY closed at 105.10)

Here’s what a stronger euro means for France: The second-largest and arguably worst managed eurozone country, IB Times reports French economy contracts 0.1% in third quarter The final estimate of France’s gross domestic product, or GDP, in the third quarter remained unchanged at the previous estimation of a contraction of 0.1 percent, indicating that the euro zone’s second-largest economy is struggling to sustain the rebound it witnessed in the second quarter with a growth of 0.6 percent. The third-quarter GDP growth was in line with analysts’ estimates. According to data released on Tuesday by the National Institute of Statistics and Economic Studies, the deficit in foreign-trade balance contributed (-0.6 points) to the contraction in the third quarter, compared to the positive (0.1 percent) contribution made in the preceding quarter.

Recessions, especially never-ending recessions, are fatal for incumbent politicians, so pressure is building for a European version of Japan’s “Abenomics,” in which the European Central Bank is bullied into setting explicit inflation targets and monetizing as much debt as necessary to get there. The question is, will it happen before the downward momentum spawns political chaos that spreads to the rest of the world. See Italian President warns of violent unrest in 2014. And Mike Mish Shedlock reports on French Socialism New law in France: Limos must wait 15 minutes minimum before picking up rides.

Michael Hudson posts in CounterPunch Europe’s deadly transition from social democracy to oligarchy.   Ever since the Bank of England was founded in 1694, central banks have printed money to finance public spending. Bankers also create credit freely, when they make a loan and credit the customer’s account, in exchange for a promissory note bearing interest.

Today, these banks can borrow reserves from the government’s central bank at a low annual interest rate (0.25% in the United States) and lend it out at a higher rate. So banks are glad to see the government’s central bank create credit to lend to them. But when it comes to governments creating money to finance their budget deficits for spending in the rest of the economy, banks would prefer to have this market and its interest return for themselves.

European commercial banks are especially adamant that the European Central Bank should not finance government budget deficits. But private credit creation is not necessarily less inflationary than governments monetizing their deficits (simply by printing the money needed). Most commercial bank loans are made against real estate, stocks and bonds – providing credit that is used to bid up housing prices, and prices for financial securities (as in loans for leveraged buyouts).

The reality is made clear by comparing the ways in which the United States, Britain and Europe handle their public financing. The U.S. Treasury is by far the world’s largest debtor, and its largest banks seem to be in negative equity, liable to their depositors and to other financial institutions for much larger sums that can be paid by their portfolio of loans, investments and assorted financial gambles. Yet as global financial turmoil escalates, institutional investors are putting their money into U.S. Treasury bonds – so much that these bonds now yield less than 1%. By contrast, a quarter of U.S. real estate is in negative equity, American states and cities are facing insolvency and must scale back spending. Large companies are going bankrupt, pension plans are falling deeper into arrears, yet the U.S. economy remains a magnet for global savings.

Britain’s economy also is staggering, yet its government is paying just 2% interest. But European governments are now paying over 7%. The reason for this disparity is that they lack a “public option” in money creation. Having a Federal Reserve Bank or Bank of England that can print the money to pay interest or roll over existing debts is what makes the United States and Britain different from Europe. Nobody expects these two nations to be forced to sell off their public lands and other assets to raise the money to pay (although they may do this as a policy choice). Given that the U.S. Treasury and Federal Reserve can create new money, it follows that as long as government debts are denominated in dollars, they can print enough IOUs on their computer keyboards so that the only risk that holders of Treasury bonds bear is the dollar’s exchange rate vis-à-vis other currencies.

By contrast, the Eurozone has a central bank, but Article 123 of the Lisbon treaty forbids the ECB from doing what central banks were created to do: create the money to finance government budget deficits or rollover their debt falling due. Future historians no doubt will find it remarkable that there actually is a rationale behind this policy – or at least the pretense of a cover story. It is so flimsy that any student of history can see how distorted it is. The claim is that if a central bank creates credit, this threatens price stability. Only government spending is deemed to be inflationary, not private credit!

Neoliberal monetarists neglect the debt burden being imposed today from Latvia and Iceland to Ireland and Greece, Italy, Spain and Portugal. If the euro breaks up, it is because of the obligation of governments to pay bankers in money that must be borrowed rather than created through their own central bank. Unlike the United States and Britain which can create central bank credit on their own computer keyboards to keep their economy from shrinking or becoming insolvent, the German constitution and the Lisbon Treaty prevent the central bank from doing this.

When debts cannot be paid or rolled over, foreclosure time arrives. For governments, this means privatization selloffs to pay creditors. In addition to being a property grab, privatization aims at replacing public sector labor with a non-union work force having fewer pension rights, health care or voice in working conditions. The old class war is thus back in business – with a financial twist. By shrinking the economy, debt deflation helps break the power of labor to resist.

It also gives creditors control of fiscal policy. In the absence of a pan-European Parliament empowered to set tax rules, fiscal policy passes to the ECB.

Economic democracy will give way to financial oligarchy, reversing the trend of the past few centuries.

Is Europe really ready to take this step? Do its voters recognize that stripping the government of the public option of money creation will hand the privilege over to banks as a monopoly? How many observers have traced the almost inevitable result: shifting economic planning and credit allocation to the banks?

Even if governments provide a “public option,” creating their own money to finance their budget deficits and supplying the economy with productive credit to rebuild infrastructure, a serious problem remains: how to dispose of the existing debt overhead now acting as a deadweight on the economy. Bankers and the politicians they back are refusing to write down debts to reflect the ability to pay. Lawmakers have not prepared society with a legal procedure for debt write-downs – except for New York State’s Fraudulent Conveyance Law, calling for debts to be annulled if lenders made loans without first assuring themselves of the debtor’s ability to pay.

Bankers do not want to take responsibility for bad loans. This poses the financial problem of just what policy-makers should do when banks have been so irresponsible in allocating credit. But somebody has to take a loss. Should it be society at large, or the bankers?

It is not a problem that bankers are prepared to solve. They want to turn the problem over to governments – and define the problem as how governments can “make them whole.” What they call a “solution” to the bad-debt problem is for the government to give them good bonds for bad loans (“cash for trash”) – to be paid in full by taxpayers. Having engineered an enormous increase in wealth for themselves, bankers now want to take the money and run – leaving economies debt ridden. The revenue that debtors cannot pay will now be spread over the entire economy to pay – vastly increasing everyone’s cost of living and doing business.

Why should they be “made whole,” at the cost of shrinking the rest of the economy? The bankers’ answer is that debts are owed to labor’s pension funds, to consumers with bank deposits, and the whole system will come crashing down if governments miss a bond payment. When pressed, bankers admit that they have taken out risk insurance – collateralized debt obligations and other risk swaps. But the insurers are largely U.S. banks, and the U.S. Government is pressuring Europe not to default and thereby hurt the U.S. banking system. So the debt tangle has become politicized internationally.

So for bankers, the line of least resistance is to foster an illusion that there is no need for them to accept defaults on the unplayably high debts they have encouraged.  Creditors always insist that the debt overhead can be maintained – if governments simply will reduce other expenditures, while raising taxes on individuals and non-financial business.

The reason why this won’t work is that trying to collect today’s magnitude of debt will injure the underlying “real” economy, making it even less able to pay its debts. What started as a financial problem (bad debts) will now be turned into a fiscal problem (bad taxes). Taxes are a cost of doing business just as paying debt service is a cost. Both costs must be reflected in product prices. When taxpayers are saddled with taxes and debts, they have less revenue free to spend on consumption. So markets shrink, putting further pressure on the profitability of domestic enterprises. The combination makes any country following such policy a high-cost producer and hence less competitive in global markets.

This kind of financial planning – and its parallel fiscal tax shift – leads toward de-industrialization. Creating ECB or IMF inter-government fiat money leaves the debts in place, while preserving wealth and economic control in the hands of the financial sector. Banks can receive debt payments on overly mortgaged properties only if debtors are relieved of some real estate taxes. Debt-strapped industrial companies can pay their debts only by scaling back pension obligations, health care and wages to their employees – or tax payments to the government. In practice, “honoring debts” turns out to mean debt deflation and general economic shrinkage.

This is the financiers’ business plan. But to leave tax policy and centralized planning in the hands of bankers turns out to be the opposite of what the past few centuries of free market economics have been all about. The classical objective was to minimize the debt overhead, to tax land and natural resource rents, and to keep monopoly prices in line with actual costs of production (“value”). Bankers have lent increasingly against the same revenues that free market economists believed should be the natural tax base.

So something has to give. Will it be the past few centuries of liberal free-market economic philosophy, relinquishing planning the economic surplus to bankers? Or will society re-assert classical economic philosophy and Progressive Era principles, and re-assert social shaping of financial markets to promote long-term growth with minimum costs of living and doing business?

At least in the most badly indebted countries, European voters are waking up to an oligarchic coup in which taxation and government budgetary planning and control is passing into the hands of executives nominated by the international bankers’ cartel. This result is the opposite of what the past few centuries of free market economics has been all about.

Mike Mish Shedlock posts Toxic smoke cloud engulfs Greece; Six years of relentless recession; Horrific statistics. Greece to assume the rotating presidency of the EU. On January 1, Greece assumes the rotating presidency of the European Union in a state close to suffocation, not only via austerity adjustments since 2010, but also literally, by a toxic cloud fueled by wood fires that replace conventional heating.

The beret dense smog that grips these days Athens or Thessaloniki is also a metaphor for the political gridlock: the government insists on not lowering the tax on heating oil to intractable limits for broad social layers, but a group of 41 deputies of the conservative New Democracy (ND), rector of the bipartite Executive, has unsuccessfully raised a parliamentary motion to reduce it.

An authentic rebellion aboard the party of Prime Minister Antonis Samaras. ND and Pasok socialist now number just 152 seats in a House of 300, and the rebel MPs representing about one-third in the ranks of ND.

The mutiny of the conservatives is just the penultimate chapter of an intestine, economic, but with clear political implications, the result of six years of recession and unfathomable weariness of citizenship to the endless cuts crisis.

Horrific Statistics

  • 27.4% unemployment (nearly 52% among those under 24 years)

  • 3.8 million Greeks living in poverty or social exclusion in 2012 (400,000 more than the previous year)

  • 350,000 households without electricity for non-payment bills

  • 30% of the population have no access to public health care

  • Virtual paralysis of the universities, which since September run almost unattended by the dismissal of officials

  • Three killed by asphyxiation because of home fires for warmth

  • Four out of five blocks of flats facing the winter without heating due to inability to afford it

  • 21 continuous quarters recession

  • 34.6% of the Greek population at risk of poverty or social exclusion

Political Setup

  • SYRIZA, leads most polls of likely voters ahead of ND

  • Neo-Nazi Golden Dawn carries between 9% and 11% of the votes and is now the third political force

  • Only 33% of citizens believe possible ND victory if the election were held today

  • The once mighty Pasok, houses more than a trashy expectations 5% support, compared with 44% of votes in 2009

How much longer the “New Democracy” government of Prime Minister Antonis Samaras can hang together remains to be seen.

Should Samaras lose a vote of confidence for any reason, the Greek house of debt that cannot and will not be paid back all comes crashing down.

For those counting, Greece received 240 billion euros in aid, in a foolish attempt by the Troika to keep Greece in the eurozone. Most of the loan has been earmarked for the recapitalization of banks and the payment of interest on the debt, which now accounts for 157% of GDP.

Germany and the ECB are adamant there will not be writedowns on that debt. Both are in fantasyland.

Default, accompanied by a messy eurozone breakup awaits.

Shaun Richards posts Prospects for the Euro area and the European Central Bank in 2014

The peripheral Euro area nations have a particular problem from the two areas of monetary tightening.

These are the countries with the weakest banks and so any monetary tightening from stronger financial conditions imposed by the ECB will hit them the hardest. Today has seen a symbolic move on the front as the troubles at the world’s oldest bank Monte Paschi in Italy mean that the largest shareholder has voted to delay a cash call. Those wondering about the background to this can find it back on my post on January 28th. But the fundamental issue here is that banks facing capital and regulatory pressure are unlikely to be keen to lend and those under the severest pressure are mostly to be found in the periphery.

Inflation and disinflation. The disinflationary pressure of late 2013 was driven at least in part by the strong Euro and the shock effect of the 0.7% reading for consumer inflation in October was strong. Actually readers of this blog will not have been shocked at all but the media are now on the ECB’s case. There was some relief in inflation rising in November to an annual rate of 0.9% but there are two major problems for the ECB ahead in 2014.

1. Inflation below target-and looking likely to remain so- adds to the pressure to ease policy further.

2. Actual disinflation or falling prices is occuring in places where the debt burden is worst of all. For example Greece has the worst debt burden of 170% of economic output (and rising) whilst consumer prices and the GDP deflator are falling. The fact that wages and economic output are falling too makes this situation extremely toxic as another haircut or default looks inevitable. On every measure it looks less and less affordable.

But whilst there is some ennui about the situation in Greece -not shared here- there can be none about Italy. Previously Italy was a nation with a high public debt but with controlled annual deficits whereas now it has deficits which means that the debt is growing. As of the halfway point of 2013 it was at 133.3% of GDP and just as significantly it had risen from 125.6% a year earlier. In short unless Italy completely turns around and finds some decent economic growth the debate in 2014 will turn to a debt haircut there especially if these numbers from today spread throughout her economy.

In November 2013 the total producer price index decreased by 0.1 with respect to the previous month; the index of producer prices decreased by 0.1 on domestic market and marks no variation on non-domestic market……The index decreased by 1.8% compared with November 2012 (-2.3% on domestic market and -0.4% on non-domestic market).

On such a road one starts to wonder if the recent rise in Value Added Tax (a sales tax) was as much to nudge consumer inflation higher as to provide extra revenue. Of course however you spin it such moves are the last thing an already weak economy needs. So this year the saying that all roads lead to Rome might be particularly apt for the Euro area.

What next for the ECB? It has a genuinely difficult problem and I have pointed out before that much of it has been caused by politicians sticking their head in the sand and leaving all the economic heavy lifting to it. Unless it is willing to be the first major central bank to take interest-rates into negative territory then that game is mostly over so it is left with its balance sheet and its currency. The rest will be debating how to expand rather than contract the ECB’s balance sheet

Rather ironically the ECB may be hoping for an oil price or commodity price rise. I have two final thoughts for you. We will soon be finding out the price elasticity for Euro area exports to Japan as we observe an exchange rate which has reached 145 Yen. Also whilst I do not think we are there yet there are scenarios for 2014 where the ECB does take the plunge into negative interest-rates.

 

4) … Elaine Meinel Supkis posts on the new normal weather phenomena of ice age winter. Ice breakers can’t free global warming fanatic ship from antarctic summer ice. As December comes to a close, yet another sub-zero front will blow through the Northeast US.

 

5) … The stock market will turn from a bull market to a bear market in early 2014.   

Philosophical economics posts The single greatest predictor of future stock market returns.  Big selloffs usually occur in association with recessions.  That’s where market timers make their money–by anticipating turns in the business cycle.  A hint to bears: if you’re calling for a recession right now, in this monetary environment, you’re doing it wrong.

Capital Speculator posted on Thursday December 27, 2013 Rising US Interest Rates. As the bond vigilantes continue to call the Benchmark Interest Rate, ^TNX, higher from 3.0%, and as alarm grows over Club Med fiscal funding abilities, investors, are going to derisk out of debt trade investments and out of carry trade investments, pivoting the financial market from a bull market to a bear market.

 

6) …. An inquiring mind asks, what are you going to believe regarding the future of Europe?

Are you going to believe the Austrian economics viewpoint of a European Union breakup or the Dispensation economics viewpoint of the emergence of a One Euro Government, that is a European Super State, with great democratic deficit?    

Both are totally logically, the latter presents from Ephesians, 1:10, that God has appointed Jesus Christ as the steward of all things economic and political for the maturing, completion and perfection of liberalism as both a paradigm and age. And the latter viewpoint integrates from Revelation 6:1-2, that Jesus Christ has opened the first seal of the Scroll of end time events, releasing the Rider on the White Horse, who has a bow, without any arrows, symbolic of economic sovereignty, to effect a global coup d’etat, to transfer sovereignty from bankers and nation state democracies to nannycrats and regional bodies such as the ECB, to bring forth the Beast System of Revelation 13:1-4, as a replacement for the libertarian despised Creature from Jekyll Island.

The Scripture of Revelation 6:1-2, relates “came out conquering, and to conquer”.

When the Rider on the White Horse was released on October 23, 2013, he began his ride over planet earth to conquer governments, bankers and investors, beginning first with the Emerging Market Nations, EEM, of Turkey, TUR, Brazil, EWZ, Indonesia, IDX, Thailand, THD, and the Philippines, EPHE.  

He began conquering with the Means of Economic Destructionism, that is the Benchmark Interest Rate, ^TNX, by enabling the bond vigilantes to begin calling the rate higher from 2.48%, and by enabling the currency traders to begin short selling currencies, destroying the monetary authority of the central banks of the periphery nations, as well as the national sovereignty, and the seigniorage, that is the moneyness of those nations, this being reflected in the fiat wealth, that is the stock value of said nations, and their banks, and corporations, trading significantly lower in value.  The outcome of his ride is an ever increasing victory as investors and people in the nations are being reduced to debt peons.     

In Europe, Jesus Christ is active in economic administration of France, where there is no mismanagement of the economy as John Rubino writes in What Blows Up First? Part 1: Europe, as he states, “France is the second-largest and arguably worst managed eurozone country”. Jesus Christ is in active administration of the country, bringing its economy into greater economic contraction via a larger foreign trade balance, bringing forth economic recession. Furthermore, the exceedingly great genius of Jesus Christ is seen in the Mike Mish Shedlock report New law in France: Limos must wait 15 minutes minimum before picking up rides. Here Jesus Christ is maturing, completing and perfecting klepto socialism, making France the prime example of a mature socialist state.   

There are two choices of viewpoints being presented, only one is truth, meaning that which is reliable for belief or a trust worthy promise.

The viewpoint of Austrian economics is based upon the life experience and essays of Mises, Hayek, and Rothbard.

The viewpoint of Dispensation economics is based upon the life experience of the Apostle Paul, who wrote the Epistle to the Ephesians, and the life experience of the Apostle John, who wrote the Revelation of Jesus Christ.

I find the economic doctrine of Paul and the dream given to John in his 90s, by angels, while living in exile on the Patmos, very believeable, and chose to rely upon these for economic vision and life experience; it sets me free to know the only right there is, that being “keeping Christ’s Word” as presented in Revelation 3:8, and not denying His name, so as to experience the full salvation of God.

As far as truth goes, we will soon see if the Austrian economics viewpoint is correct in a breakup of the Eurozone, or if the Dispensational economics viewpoint is correct in the formation of a One Euro Government, with policies of diktat in regional economic governance and schemes of debt servitude in totalitarian collectivism.  

For further reading I encourage, Four sources to determine one’s rights, which presents a wider critique of Austrian economics theory.  

Jesus Christ Opens The Second Seal Of The Scroll Of End Time Events …. Stocks Soar To Rally Highs On Euro Yen And Dollar Yen Currency Carry Trade Investing Which Produces Peak Fiat Wealth …. As The 10-Year Treasury Yield Hits A 2-1/2 Year High Further Destroying Fiat Money

December 29, 2013

This document is posted in the easier to read Google Documents format here

Financial Market Report for the week ending December 27, 2013

1) … An inquiring mind asks, do you have an economic way of thinking? One’s economic thinking is determined by three questions and is shaped by truth which is defined as that which is reliable for belief or a trustworthy promise. and ethics which is defined as economic regard for the property and person of another.

First economic question, Where does economic theory come from and what is economic theory?

Classical economics theory comes out education in University Hotbeds, such as George Mason University in Arlington VA, or Auburn University in Auburn AL. On the other hand, dispensational economic theory comes by the happenstance of Jesus Christ in the divine moments of life, and is presented in books such as The Economy of God written by Witness Lee.

Agnostic philosophers present economic theory as a set of monetary hypotheses proven by reason to be true. Libertarian philosophers present economic theory as a set of monetary hypotheses matched up against the facts and logically established as reliable.

Henry Hazlitt writes in Ludwig Von Mises Understanding Austrian Economics The Austrian view was revived mainly by one man, an Austrian by birth as well as an “Austrian” by conviction, Ludwig von Mises (1881-1973). He made his influence felt both by his written works and by his oral teachings. Among his early distinguished students and followers were Gottfried Haberler, Fritz Machlup, Oskar Morgenstern, Lionel (now Lord) Robbins, and, most influential of all, F.A. Hayek (b. 1899).

Though there is now a gratifying number of able young American economists writing in the Austrian tradition, Human Action still stands as the most complete, powerful, and unified presentation of Austrian economics in any single volume. Mises always generously acknowledged his indebtedness to his predecessors. He recalled in a short autobiography (Notes and Recollections, 1978) that around Christmas 1903 he read Menger’s Principles of Economics for the first time. “It was the reading of this book,” he wrote, “that made an ‘economist’ of me.

Today’s zealous group of younger “Austrian” economists, though all acknowledging their great debt to Mises, do not treat his Human Action as the final word on the subject but are exploring a whole range of economic problems with a new vigor. Murray Rothbard (b. 1926), a student of Mises’s, produced a two-volume treatise, Man, Economy, and State (1962), along Misesian lines.

The “Austrian” economists, more consistently than those of any other school, have criticized nearly all forms of government intervention in the market — especially inflation, price controls, and schemes for redistribution of wealth or incomes because they recognize that these always lead to erosions of incentives, to distortions of production, to shortages, to demoralization, and to similar consequences deplored even by the originators of the schemes

On the other hand dispensational economists present dispensation economics theory as monetary hypotheses revealed by faith and trusted in for life experience; these rely on sound New Testament doctrine as being objective truth, and a source of virtue and ethics.  Dispensation is defined as the household management plan of God to establish a paradigm in every age, and to make all things therein, mature, complete, and fulfilled

Second economic question, What is money?

Money is defined as the credit and trade that comes from the administration of a household or stronghold.

The Apostle Paul wrote of dispensation, in Ephesians 1:10, communicating that Jesus Christ is in charge of all things economic and political. Thus He is in full administration of money, whether it be fiat money or diktat money,  Specifically He is overseeing the completion, fulfillment, and perfecting of the paradigm and age of liberalism, and is commencing that of authoritarianism.

And, the Apostle John wrote of the Revelation of Jesus Christ, communicating those things which must shortly come to pass in Revelation 1:1, meaning that once things start to flow, they will, like lined dominoes, topple one upon another, to bring forth end time events, and the Kingdom of God on earth.

Third economic question, What is economics?

Economics is defined as the ethical experience between a persona and another, a corporation, and the state, that is government. One’s economics will either be in iniquity or in righteousness, as one has movement in the spirit of iniquity or the sprit of righteousness.   

2)  … Three news events during December 2013 communicate that Jesus Christ opened the Second Seal of The Scroll Of End Time Events, presented in Revelation 6:3-4. “When the Lamb opened the second seal, I heard the second living creature say, Come!” Then another horse came out, a fiery red one. Its rider was given power to take peace from the earth and to make people kill each other. To him was given a large sword.”

The first news event reflecting that Jesus Christ has opened the second seal on the scroll of end time events comes from Jason Ditz of Antiwar who reports Iran Sanctions Bill to skip Committees; Hawks promise veto-proof majority with vote likely in January. Yesterday’s open letter from Senate committee leaders warning against the Iran sanctions bill appears to have had the opposite effect, as Majority Leader Sen. Harry Reid (D- NV) is said to have decided to bypass the committees outright and could bring the bill to a vote as soon as January. The bill would impose yet more sanctions on Iran’s oil industry, violating the interim P5+1 deal with Iran and likely ruining ongoing diplomacy with the nation.

President Obama has promised to veto the bill, warning it would sabotage the talks and might lead to a war. Senate hawks like Lindsey Graham (R-SC), for whom that is the entire point, have promised to secure a veto-proof majority of 67 Senators for the bill, and early reports are that some 50 are now looking to be co-sponsors, suggesting that’s a real possibility. In addition to imposing new sanctions on Iran, the bill also expresses Senate support for an Israeli attack on Iran at any time, pledging American support to such a war whenever it is launched.

The second news event comes via Alex Kane, assistant editor for Mondoweiss and the World editor for AlterNet who posts Meet the American Hedge Fund Billionaire who could start a Holy War in the Middle East. Henry Swieca funds Temple Institute, a group that is eyeing Islam’s third holiest site. Forbes profiles him having net worth is $1.2 billion as of September 2013. He is well-known as a financial guru. But he’s less known for what his foundation pours money into: right-wing, pro-Israel causes. Along with a host of charitable groups and domestic Jewish centers, the Swieca Family Foundation, which he runs with his Israeli American wife Estee, he has poured tons of cash into pro-Israel groups, and is now assisting the Temple Institute, an organization that promotes the building of the Third Temple on the third most holy site for Muslims.

In early December, the Washington Post disclosed that Swieca and his wife funded the Jerusalem based Temple Institute’s move to “to a large, renovated space in the Old City’s Jewish Quarter, overlooking the Western Wall.” The move put the institute just a short walk away from the place where they hope the Third Temple arises.

The religious extremists who run the Temple Institute have their sights set on the Haram al-Sharif, or the Noble Sanctuary in English, which is also the Temple Mount for Jews. “Our short-term goal is to rekindle the flame of the Holy Temple in the hearts of mankind through education,” the Temple Institute says on their website. “Our long-term goal is to do all in our limited power to bring about the building of the Holy Temple in our time.”

In the middle of the Noble Sanctuary sits the Dome of the Rock, a shrine whose gold dome is a fixture on the Jerusalem skyline. The Noble Sanctuary is home to the Al Aqsa Mosque, thought to be the place where the Prophet Muhammad was transported to from Mecca and is the third holiest site to Muslims around the world. At the same time, it is a site deeply revered by Jews, since it is the place thought to be where the First and Second Temples stood. The Second Temple was famously destroyed in A.D. 70 by the Romans, who then sent Jews into exile. The Temple Institute says that “the Temple Mount has to be cleared of the Dome of the Rock and the mosques which are presently located upon it before the physical rebuilding of the Holy Temple can begin.”

Both Judaism and Islam have competing claims to the site, making it the most contested piece of real estate on earth. In 2000, a provocative visit by Israeli Prime Minister Ariel Sharon to the Noble Sanctuary set off clashes that many say sparked the Second Intifada. It continues to be a frequent site of clashes between Palestinians and Israeli authorities.

This month, Israel reportedly asked Jordan, which administers the holy site, to consider allowing some level of Jewish worship, feeding into Palestinian fears that Israel wants to control all of Jerusalem forever instead of ceding the eastern half of it to a Palestinian state. Jordan rejected the request, with the director of the trust that controls the site saying that granting the request would spark “bloodshed.”

Founded in 1984, the Temple Institute has been hard at work on a number of activities: recreating ritual objects to be used for a Third Temple; hosting conferences on research about the temple; educating the public and Israeli soldiers about its history; and lobbying for changes to the status quo that prohibits Israeli Jews from praying openly on the Noble Sanctuary’s/Temple Mount’s grounds. The organization, founded by a far-right religious zealot named Rabbi Yisrael Ariel, is also bolstered by the support of evangelical Christians, who provide the organization with much of their income through buying entrance tickets and museum shop items. Christian Zionists fully support the aims of the Temple Institute. They believe that the building of a Third Jewish Temple is a prerequisite to the coming of the Messiah and the apocalypse.

Ariel, a former Israeli soldier who helped capture Jerusalem’s Old City from Jordan during the 1967 War, leading to full Israeli control of Jerusalem (and the West Bank, Gaza, the Sinai and the Golan Heights), is a former member of the Kach party. Led by Rabbi Meir Kahane, the party was banned in Israel for its violent and racist rhetoric, which included advocating for the expulsion of all Arabs from the lands Israel controls. In 1984, members of a Jewish terrorist group were arrested by the Israeli police for plotting to blow up the Dome of the Rock. Ariel was one of the only people to speak out in support of their actions..

Today, the Temple Institute does not advocate for violence. Instead, they’re focused on changing the status quo that prevails at the holy site through other means. Those other means, though, are still considered dangerous and inflammatory. In the words of Israeli journalist Gershom Gorenberg, the author of a book that examines the struggle over the Temple Mount, the institute’s actions are “education for conflict over the world’s most contested holy site.”

The current arrangement at the Noble Sanctuary/Temple Mount dates back to the 1967 War.  Although Israel had captured a site revered to Jews, they gave control of the Noble Sanctuary to the Jordanian-run Islamic waqf, a trust that controls access to the site, making it that rare area in Jerusalem where Israeli authorities don’t call all the shots.  In 1921, members of Israel’s Chief Rabbinate crafted rules that prohibited Jews from entering the area.  They said that Jews can only enter if they are ritually pure, but that the necessary purification ceremony is prohibited for various religious reasons.  These rules were recently reaffirmed by the rabbinate.  Jews are allowed to pray at the Western Wall, another holy place considered to be the wall outside the Temple Mount.

The legal prohibitions that surround the holy place haven’t stopped Jews who disagree from going to the Noble Sanctuary.  In recent months, the Washington Post and the New York Times have highlighted the increasing numbers of Jews going up to pray on at the contested site. According to numbers published by an Israeli newspaper, the number of Jews visiting the holy site increased from 5,700 in 2009 to 8,300 in 2011. If Jews are found to be publicly praying, Israeli police take them away, with some being arrested.  But some Jews try to pray discreetly.

The Temple Institute has been pushing Israeli Jewish prayer on the Temple Mount.  In September, the organization teamed up with a right-wing movement called Manhigut Yehudit to lead tours at the site for the Jewish holiday of Sukkot.

The organization has been encouraged in recent months by a growing body of right-wing, expansionist Israeli legislators who share the Temple Institute’s goal in changing the prohibitions on prayer at the Noble Sanctuary/Temple Mount.  In November, the HaBayit HaYehudi (Jewish Home) party, which promotes annexing 60 percent of the occupied West Bank, introduced a bill that would establish regular prayer areas for Jews on the holy site.  On November 4, 2013, a heated debate in the Israeli Knesset broke out in response to proposed changes for prayer on the Noble Sanctuary/Temple Mount.

“When King David bought the Temple Mount you were savages in the desert. You have no rights on the Temple Mount, that’s a historical fact. Nothing will help you. Even now you are savages,” the Jewish Home’s Orit Strock told Palestinian Knesset members.  In response, Balad’s Jamal Zahalka told her that she was “playing with fire.”

Another Palestinian legislator, Ahmed Tibi, warned that “the second intifada broke out because of Al Aqsa and the third intifada will break out because of you.”

For historical record I post The Temple Institute presentation of, Yom Yerushalayim, Jerusalem Day, The 28th day of the month of Iyar,

The third news event is provided by Bill Van Auken, who posts in WSWS US prepares strikes against Islamists in Iraq Two years after Obama declared the US war in Iraq over, Washington is shipping Hellfire missiles and preparing for direct intervention against the same Islamist forces it backed in Syria

3)  … Liberalism’s peak fiat wealth, that is Peak Stocks, VT, was achieved on Friday December 28, 2013, via a buy of the Euro and a sell of the Yen.

In a perverse fashion peak fiat wealth came via the destruction of fiat money. The destruction of Credit, AGG, as well as Major World Currencies, DBV, and Emerging Market currencies, CEW, came as as currency traders drove the Euro strongly higher to 136 and the Yen lower to 93

 A strong US Dollar, $USD, UUP, relative to the Japanese Yen, FXY, during December 2013, stimulated ongoing investment in US Regional Banks, KRE, and a strong Euro, FXE, relative to the Japanese Yen, stimulated ongoing investment in European Financials, EUFN, driving up US Stocks, VTI, and Eurozone Stocks, EZU, to their rally highs.

Thus strong currency carry trading, seen in a higher Dollar Yen cross, USD/JPY, and in a higher Euro Yen cross, EUR/JPY, drove World Stocks, VT, Nation Investment EFA, and Global Financials, IXG, to their six month long rally highs at the end of December 2013, producing Liberalism’s peak wealth.

Communication Equipment Manufacturers, Memory chips, and Data Storage Devices, were strong gainers from carry trade investment, as is seen in the chart of the EUR/JPY, together with ALU, MITL, NOK, ARRS, HRS, LORL, WDC, STX, and MU.

World Stocks, VT, rose 1.7%, to a new rally high, reflecting strong investing in five areas:

1) Risk Investing, FXR, CHII ,PBS, RZV, PSCI, FPX, PJP, XTN, TAN, ZIV

2) Global Spending Investing, PKB, BJK, IGV, PSCC, SOCL, PPA, CSD, IBB, CARZ, PSCD

3) Global Growth Investing, SOXX, TAN, PICK, IPN, FLM, SLX, WOOD, XHB, RZG, MHK

4) Consumer Spending, Investing, PNQI, RXI, IYC, FDN, PBJ, PSCC, IHF, XRT, KXI, PSCD

5) Eurozone Countries, EWI, EWG, EFNL, EWN, EDEN, EIRL, GREK, PGAL, EWO, EWP

The top performing stock sectors for the week ending December 28, 2013 included

Steel, SLX 4.9%

Inverse volatility, ZIV 4.0

Industrial Textiles, MHK 3.7

Design Build, FLM 3.1

Solar Energy, TAN 2.8

Resorts and Casinos, BJK 2.5

Global Industrial Production, IPN 2.4

Copper Miners, COPX 2.5

Homebuilders, XHB 2.4

Automobiles, CARZ 1.9

Small Cap Consumer Staples, PSCC 1.9

Social Media, SOCL 1.9

Small Cap Pure Value, RZV 1.9

Semiconductors, SOXX 1.9

US Infrastructure, PKB 1.8

Media, PBS 1.7

Industrial Mining, PICK 1.7

Solar Energy, TAN 1.7

Global Industrial Production, FXR 1.3

Timber Producers, WOOD, 1.2

Small Cap Energy, PSCE, 2.7, Energy Production, XOP, 1.6, Energy Service, OIH, 1.9

Exxon Mobil, XOM, 2.9

Gold Mines, GDX, 4.5 and Silver Miners, SIL, 5.1, SSRI, 5.7

The chart of Gold, $GOLD,shows a close at $1213, up 0.9% for the week.

Gold, GLD, rose 1.0% and Silver, SLV, rose 3.9%.

The chart of the S&P 500, SPX, shows a close at $1841, up 1.3% for the week. This week’s risk-on investing producing peak wealth is seen in the Risk On ETN, ONN, trading higher, and the Risk OFF EFN, trading lower, as well as Call Write Bonds, CWB, trading up to and then falling from a rally high, as well as Junk Bonds, JNK, falling from its zenith high, and the Euro Yen Currency Carry Trade, EUR/JPY, topping out; and Bespoke Investment Group reporsing S&P 500 Hits Most Overbought Level Since May.  Nouf of Wave Trading Patterns writes in Safehaven.cocm “2013 was the year of the JPY carry trade; and asks is a reversal at hand?

Nation Investment, EFA,  rose 2.3%, to a new rally high; and Small Cap Nation Investment, rose IFSM, 2.7%, to a new rally high; nations trading higher included

The Eurozone, EZU, 2.5%

Greece, GREK, 4.8%, with the National Bank of Greece, NBG, 2.9%,

Spain, EWP 3.3, with Banco Santander, SAN, 3.0%

Italy, EWI, 2.8

Netherlands, EWN, 2.7

Germany, EWG, 2.5

Finland, EFNL, 2.5

Denmark, EDEN, 2.4

Austria, EWO, 2.8

Portugal, PGAL, 1.8

Ireland, EIRL, 1.5

Sweden, EWD, 3.2

The UK, EWU, 3.1

UK Small Caps, 2.1

Switzerland, EWL,  2.3

The US, VTI, 1.3

US Small Caps, IWM, 1.5, with Regional Banks, KRE, 1.5%

Nikkei, NKY, 1.0; Of note, Japanese 10-year JGB yields rose to a three-month high to stand at 0.69%; with the result that the Inverse of Japanese Government Bond, JGBS, rose 1.3% for the week, as  Bloomberg reports Shinzo Abe gave the go-ahead for Y95.88tn ($921bn) in spending for the year beginning in April 2014, an increase of 3.5% over this year’s initial budget.

Bloomberg also reports Japan’s government plans to decrease annual bond sales for the first time in six years, while boosting issuance of inflation-indexed notes to meet demand from pension funds. Investors such as banks and life insurers will be offered 155.1 trillion yen ($1.49 trillion) in the 12 months starting April 1, down from a record 156.6 trillion yen in the initial plan for the current fiscal year. Sales of linkers will increase by at least 1 trillion yen to a total of 1.6 trillion yen in the period.

Asia Excluding Japan, EPP, 1.2

South Korea, EWY, 2.9

Taiwan, EWT, 2.1

Singapore, EWS, 2.0

Singapore Small Caps, EWSS, 1.7,

Australia, EWA, 0.9

Australia Small Caps, KROO, -2.8

BRICS, EEB, 2.2

China, YAO, 0.9

China Small Caps, ECNS, 1.4

India, INP, 0.3

India Small Caps, SMIN, 3.7

Russia, RSX, 2.2

Russia Small Caps, ERUS, 1.2

Brazil, EWZ, 2.9

Brazil Small Caps, EWZS, 2.1

Thailand, THD, -2.8

Turkey, TUR, -8.1 Taylan Bilgic of Bloomberg reports The lira plummeted to a record and Turkish stocks slumped the most in the world as a showdown between the government and judicial powers triggered uncertainty over the country’s political stability. The currency weakened as much as 2.3%. against the dollar. Turkey’s two-year bond yield climbed for a second day, rising above 10%.

Emerging Markets, EEM, 2.0, with Emerging Market Mining, EMMT, 3.2%

Global Financials, IXG, 1.7%; financial sectors trading higher included:

Life Insurance Company, ING, 4.5

European Financials, EUFN, 2.8

Regional Banks, KRE, 1.5

Investment Bankers, KCE, 0.9

The Too Big To Fail Banks, RWW, 0.5

Stockbrokers, IAI 0.2

Emerging Market Financials, EMFN, 0.2

Japanese Banks, SMFG, 1.1, MTU 2.8, MFG 3.8

Chinese Financials, CHIX 1.0; Ambrose Evans Pritchard writes China eases immediate cash crunch

India Earnings, EPI 1.0

Brazil Financials, BRAF -1.3

Llyods Financial Group, LYG, 2.3

Swiss Banks, UBS, 2.7, CS 2.9

Canadian Banks, BNS, 1.2, RY, 0.9

Panama Bank, BLX, 2.4

South Korea Banks, SHG, 2.8, KB 2.4, WF, 0.6,

Yield bearing sectors trading higher included:

Energy Partnership, AMJ, 3.0%

Global Telecom, IST, 2.0

Leveraged Buyouts, PSP, 1,7

Dividend Growth, VIG, 1.3

Bond vigilantes called the Benchmark Interest Rate, ^TNX, higher to 3.01, a 2-1/2 year high destroying fiat money. This forced Aggregate Credit, AGG, 0.21%, lower.  Currency traders followed suit, in debt deflation, with competitive currency devaluation, successfully selling the Japanese Yen.

For the week on the upside, the Brazilian Real, BZF, 2.0%, the Swiss Franc, 1.6%, the Indian Rupe, ICN, 1.4%, the Euro, FXE, 1.1%, the British Pound, FXB, 0.6%, the Swedish Krona, FXS, 0.4%. And for the week on the downside, the Canadian Dollar, FXC, 0.7%, the Australian Dollar, FXA, 2.4%, and the Japanese Yen, FXY, 2.6%.

This week’s investment gains have nothing to do with a greater likelihood of future investment gains coming from the stimulus of the world central banks, greater success in enterprise development, or greater profits from global growth and expanding global trade.

Reuters reports Euro rises to more than 2-year high vs. dollar; yen falls. This week’s investment gains come from speculative leveraged investing, that is ongoing commitment to the pursuit of yield in a debt trade, specifically the pursuit of Junk Bonds, JNK, and Distressed Investments, FAGIX, as well as commitment to currency carry trade investing based upon the sale of the Japanese Yen, FXY, and the buy of the Euros and investing in US Stocks, thereby supporting the US Dollar.

Jesus Christ opened the First Seal of the Scroll on October 23, 2013, which released the Rider on the White Horse, who has bow without any arrows to effect a global coup d’etat to transfer sovereignty from nations states and their banks to regional bodies and regional nannycrats … which enabled the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, and to steepen the 10 30 U S Sovereign Debt Yield Curve, $TNX:$TYX, … which destroyed the monetary authority of the world central banks and which destroyed fiat money, … which set in motion an awesome rise in the Euro Yen, EURJPY, currency carry trade, as well as the Dollar Yen, USDJPY,  … and which leveraged up fiat wealth to produce liberalism’s peak moral hazard based prosperity on December 28, 2013, which is likely to be seen in Total Credit, reported quarterly, and M2 Money, reported weekly, topping out in value.

This achievement comes with Doug Noland reporting in Safehaven.com that after the Ben Bernanke Put, and after the Mario Draghi Do Whatever it Takes Pledge of August 2012, the Fed has injected a Trillion dollars (and the BOJ providing somewhat less) of new “money” directly into overheated financial markets in a non-crisis environment.

For the year, the Fed’s balance sheet ballooned 37% to surpass $4.0 TN. Bank of Japan assets surged 42% to exceed $2.0 TN. From my analytical framework, it can be described only as “a year living dangerously.” As he led the Federal Reserve deeper into the untested waters of contemporary monetary inflation, chairman Bernanke took time to proclaim Japan’s parallel inflationary policy a case of “enrich thy neighbor” (in contrast to Depression-era “beggar thy neighbor”).

As destabilized, speculative markets tend to do, they mounted an unpredictable reaction to the Trillions of new global liquidity. In most cases, global bond prices, AGG, actually declined  (yields rose). After beginning the year at 1.76%, 10-year Treasury yields surged 124 bps to 3.00%.

EM economies generally saw inflationary pressures rise as real growth slowed markedly in the face of ongoing rapid Credit expansions. This created an unappealing environment for global investors, with the more sophisticated “hot money” heading toward the exits.

Brazil’s local (real) sovereign yields surged 393 bps in 2013 to 13.10%, while some major bankruptcies took a heavy toll on Brazilian corporates. Political instability contributed to the 379 bps jump in Turkish (lira) 10-year yields, to 10.35%. Mexican yields rose 116 bps to 6.50%. Indonesia was an EM problem child, as 10-year yields surged 314 bps to 8.33%. India confronted a worsening inflation backdrop, with 10-year yields jumping 91 bps to 8.95%. Inflationary pressures also hurt Russian bonds, as 10-year sovereign yields jumped 91 bps to 7.81%.

After faltering EM bond markets fell out of favor, “periphery” European bonds (backstopped by the Draghi ECB) became a favored high-yield target for the global speculator community. Greek bond yields sank 226 bps this year (to 8.21%), with 10-year sovereign yields in Spain down 106 bps to 4.21%; Portugal down 70 bps to 5.96%; and Italy down 29 bps to 4.21%. Despite moribund economies, Spanish equities were up 21.1% in 2013 and Italian stocks gained 16.5%. I’d be curious to know the scope of leverage in European debt (and elsewhere!) financed by borrowing in or shorting the yen (“yen carry trade”).

EM currencies suffered. The Argentine peso declined 24.3%, the Indonesian rupiah 20.1%, the South African rand 19.5%, the Turkish lira 17.2%, the Brazilian real 12.3%, the India rupee 11.1%, the Chilean peso 8.6%, the Peruvian new sol 8.7%, the Colombian peso 8.4%, the Philippine peso 7.6%.

The commodities currencies were hit, with the South African rand down 19.5%, the Australian dollar 14.7%, the Brazilian real 12.3% and the Norwegian krone 9.5% and the Canadian dollar 7.3%.

EM equities for the most part also underperformed. Brazil’s Bovespa dropped 15.9% and Turkish equities were hit for 18.3%.

Surging Japanese stock prices were fueled by enormous Bank of Japan “money” printing and the resulting 17.5% yen (vs. the dollar) devaluation. Japan’s Nikkei equities index posted a historic advance (up 55.6%).

The Fed’s skittish tapering reversal put an exclamation point on five years of unprecedented market interventions and distortions.  In my now 24 years in the industry, I’ve witnessed my share of market exuberance and excess. Yet 2013 took speculation to a new level. I have argued the breadth of excess throughout U.S. equities surpassed even 1999. The S&P 500 returned (including dividends) 31.9%.

For 2013, the Fed’s $1 TN monetary inflation again countermanded normal system behavior and relationships – most notably further inflating securities and asset prices

Liberalism’s peak wealth has not come about because of the confidence in the world central bankers, but rather just the opposite; peak wealth has come as the currency carry traders strongly sold the Japanese Yen, realizing that the world central banks monetary policies have crossed the rubicon of sound monetary policy and have made “money good” investments bad, such include Emerging Market Bonds, EMB, Municipal Bonds, MUB, Treasury Bonds, TLT, Mortgage Backed Bonds, MBB, that is the whole spectrum of Government Bonds, GOVT, as well as Emerging Markets, EEM, such as Brazil, EWZ, EWZS, Indonesia, IDX, IDXJ, Thailand, THD, and the Philippines, EPHE, as is seen in their ongoing Yahoo Finance Chart.

Aki Ito of Bloomberg reports the Fed’s Fishers as saying While stocks globally have been fueled by central bank stimulus … I wouldn’t call it a bubble.

The crack up boom in fiat wealth presents extreme systemic risk.

Sober Look posts US credit risk appetite hits euphoria.  And Sridhar Natarajan and Krista Giovacco of Bloomberg report The amount of loans to the riskiest U.S. companies ballooned to a record this year, propelled by unprecedented demand for floating-rate debt that offers protection from rising interest rates. The market for junk-rated loans increased to $683 billion, exceeding the 2008 peak of $596 billion, according to Standard & Poor’s Capital IQ Leveraged Commentary and Data. The $130 billion surge this year was fueled by borrowings that don’t include typical lender protections such as limits on leverage. Loans, which suffered the biggest losses in the fixed- income market during the financial crisis, staged a comeback as investors funneled a record $64.4 billion into funds that buy the debt in anticipation the Federal Reserve would start unwinding its bond buying. The demand has enabled companies take on more debt for shareholder rewards,  prompting regulators to warn that the excesses which contributed to the credit crisis may be creeping back. ‘The worst deals are made in the best of times is a phrase we hear often,’ Frank Ossino, of  Newfleet Asset Management, said. ‘While the default environment will remain low, ever more aggressive transactions become the seeds of the next default cycle.'”

Steven Russolillo of the WSJ reports U.S. companies are showering cash on shareholders, powering the stock market’s record-breaking rally. Share buybacks and dividends are reaching levels unseen since before the financial crisis, as persistent economic uncertainty prompts cash-rich companies to reward shareholders rather than invest in other activities. U.S. companies in the S&P 500-stock index bought back $128.2 billion of their own shares in the third quarter. That is the highest level since the fourth quarter of 2007. Combined, stock buybacks and dividends totaled $207 billion in the third quarter, also the highest in nearly six years.

4) …  There are many signs and angst of the Beast rising to replace the Creature from Jekyll Island.

John Redwood writes Staying out of the Euro requires a new relationship. The EU partners are pressing on rapidly with full union. The logic of the Euro requires ever more control to be taken to the centre over economic, fiscal and banking policy. The logic of ever closer union and the wish to harmonise their countries leads to outbreaks of integrationist policy. The EU view of mutual solidarity and support leads ineluctably to more sharing and pooling of power. This process has been going on for more than a decade since the Euro was established. We need to force the federalist parties to explain how much power they have given away, and to come clean about how little scope there now is for an elected UK government to alter great swathes of policy.

There will never be a new relationship, as God designed from eternity past, that in the last days, the EU rise in preeminence over the UK as well as over the US; these latter two being the twin iron legs of global hegemonic power seen in Daniel’s Statue of Empires presented in Daniel 2:25-45.

The EU was planned to be the very lynchpin of God’s Economy, the concept that Jesus Christ is acting in dispensation, that is the political and economic administration of all things, so as to mature and complete every paradigm and age.

On October 23, 2013, Jesus Christ opened the First Seal of The Scroll of End Time Events, presented in Revelation 6:1-2,thus enabling the Rider on The White Horse, who has a bow without any arrows, to empower the bond vigilantes to commence calling the Interest Rate on the Ten Year Note, ^TNX, that is the “Means of Economic Destructionism”, higher from 2.48%, thereby destroying fiat money, and to begin destroying fiat wealth, VT, as well as Nation Investment, EFA, and Global Financial Institutions, IXG, something that was done through debt deflation by the currency traders selling the Major World Currencies, DBV, the week ending December 13, 2013, and the Emerging Market Currencies, CEW, the week ending December 20, 2013.

The trade higher in the Benchmark Interest Rate, ^TNX, beginning on October 23, 2013, was an extinction event which terminated the paradigm and age of liberalism, and pivoted the world into that of authoritarianism.

Bible prophecy of Revelation 13:1-4 communicates that Jesus Christ is bringing forth a number of new things, as liberalism’s dynamos of creditism, corporatism, globalism, are powering down, and authoritarianism’s dynamo of regionalism is powering up.

Under liberalism bankers, corporations, government leaders, entrepreneurs, and investors of nation state democracies were the legislators of economic value and the legislators of economic life that shaped one’s means and one’s ends. In contrast, under authoritarianism, currency traders, bond vigilantes and nannycrats working in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

Welcome to totalitarian collectivism; it’s the complement of regional governance as the Beast regime  of regional governance is rising to rule the world.  Soon out of the Club Med crisis of sovereign insolvency and banking insolvency, it will establish policies of diktat of regional governance in every one of the world’s ten regions, and schemes of totalitarian collectivism in every one of mankind’s seven institutions, where the EU will be model, that is the template, for all of the regional zones.

The beast regime’s power is quickly growing, and cannot be stopped by John Redwood, or Nigel Farage, or anyone else.

In The Road to Serfdom, Hayek argued that “Economic control is not merely control of a sector of human life which can be separated from the rest; it is the control of the means for all our ends” p95.

Under authoritarianism, the dynamo of regionalism will be so strong, that economic control by regional nannycrats will be total, as they rule in political, fiscal, monetary, and economic policies of diktat, through statist public private partnerships; thus creating a regional gulag of totalitarian collectivism, in every one of mankind’s seven institutions, where debt servitude is enforced for regional security, stability and sustainability. The new normal will be austerity. Personal property will be appropriated by the regional superstate, as personal property rights, and the traditional rule of law, is superseded by regional property and regional property rights.

Steve Light and A. Woodson, of WSWS write Obama pushes program to turn public schools over to corporations.  Obama, backed by New York City’s mayor-elect Bill de Blasio and the teachers’ union, is promoting efforts to privatize public education.

5) … A European Superstate, one of great democratic deficit, will emerge out of a soon coming Eurozone sovereign insolvency, banking insolvency, and corporate insolvency crisis.

Mike Mish Shedlock writes European Monetary Union misnamed.  I Propose GEU (German Economic Union) or USG (United States of Germany). Merkel’s first parliamentary speech of her third term adds credence to the disorderly breakup thesis.

In all respect, if God’s word of bible prophecy, presented in Daniel 2:25-45, Revelation 13:1-4, and Daniel 7:7, be true, then there will come a day, when Mr Shedlock will have to eat his Austrian economics thesis.

The dispensation economics manifest presents that God, that is the Sovereign Lord God, purposed from eternity past that all those living in the Euroland, will have economic experience in statist public private partnership mandates, coming largely out of Brussels and Berlin. The periphery nations, that is the PIIGS, will exist as hollow moons revolving around planet Belgium and planet Germany. The Portuguese, Irish, Italians, Greeks and Spaniards, can be neither Belgians nor Germans, yet all will be one, living in a gulag of austerity existing under the fiscal, banking, monetary and economic sovereignty of regional nannycrats, as regionalism is authoritarianism’s dynamo of economic activity, establishing diktat policies of regional governance, and totalitarian schemes of debt servitude, all to establish regional security, stability and sustainability.

Germany has consistently taken the preeminence to provide order out of chaos in the Eurozone, as a revived Roman Empire rises in the Eurozone in accordance with Bible prophecy which foretells that out of sovereign armageddon, that is a credit bust and world investment breakdown, a new global economic and political regime of regional governance and totalitarian collectivism will arise as is presented in Revelation 13:1-4.

Germany will continue leading the way forward in regional federalism as Angela Merkel has heard and heeded the 1974 Clarion Call of the Club of Rome for regional global governance, as she and Nicolas Sarkozy called for a true European economic government in August 2011, as investors fled the stocks markets and currency traders sole world currencies and emerging market currencies on fears that a debt union had formed in the EU.

Nelson D Schwartz of the NYT reports that Angela Merkel said in January 1, 2012, New Year’s speech that “Germany has mastered the crisis as no other”. Her blunt message was echoed in Italy, France and Greece, the epicenter of the debt crisis, where Prime Minister Lucas Papademos asked for resolve in seeing reforms through, “so that the sacrifices we have made up to now won’t be in vain.” Germany is the lead partner in the EU ECB Troika, which has been handed the baton of sovereign authority formerly held nation states, by the Rider on The White Horse, that is the First Horseman of the Apocalypse, presented in Revelation 6:1-2, as God is pushing political and economic power of the UK and the US, the two iron legs of global hegemony which have ruled the world since the late 1700s, into the hands of ten kings, who will eventually come to rule, each in his own regional power base, as seen in Revelation 17:12.

Spiegel reports on December 18, 2013, Chancellor urges reforms to preserve Euro.  In her first parliamentary speech since her re-election for a third term on Tuesday, she warned that Europe needed to take further action to make the euro zone crisis-proof. And related that the German government would not tolerate a weakening of German industry or job losses, she said. “Germany wants to remain a strong industrial location, we need competitive companies,” she said. “This is about companies and when it’s about companies, it’s about jobs.” She said Germany’s new Economy and Energy Minister, Social Democrat Sigmar Gabriel, would make this very clear to the European Commission.

With this distribution of power to regions, we see the rising of the Two Feet And Ten Toed Kingdom of regional economic governance as foretold in Daniel 2:25-45, which will be mired in the iron of diktat and the clay of totalitarian collectivism. This unstable mixture of governance will eventually crumble and a one world government, Daniel 7:7, will emerge, which will provide a one world currency and global seigniorage Revelation 13:17-18.

Other nations across Europe will follow Germany’s lead. Armorel Kenna of Bloomberg reports Italians Must Make Sacrifices to Avoid Collapse, President Says. Italians will have to make sacrifices to avoid financial collapse and must keep faith in Europe, President Giorgio Napolitano said in a New Year’s speech. “Nobody, today, no social group, can stall on the commitment to contribute to the revival of public accounts to avoid the financial collapse of Italy,” Napolitano said in his televised speech late yesterday. “The sacrifices won’t be useless. Only united can we progress and count as Europeans in a radically changed world.”

At the appointed time, fate, not any human action, will open the curtains, and onto the Europe’s stage will step the most credible leader, Europe’s New Charlemagne, Revelation 13:5-10, together with his banking partner, Mario Draghi, already in place, Revelation 13:11-18.

They will not be elected; rather destiny will bring them forth in a Eurozone coup d etat, to provide order out of chaos, Revelation 6:1-2. These sovereigns will develop the Eurzone into a type of authoritarian revived Roman Empire. The word, will and way of these two will provide a new seigniorage, and the people will be amazed and follow after it, placing their confidence and trust in it, giving it their full allegiance, Revelation 13:3-4.

David R Reagan wrote sovereignty will be sacrificed as a Federal Europe is formed. “German Foreign Minister Joschka Fischer repeated his call for a European government in July, 2000, and said the European single currency, the Euro, was “the first step to a federation.” He added that he wanted a “powerful president.”1 Fischer said his aim was “nothing less than a European parliament and a European government, which really do exercise legal and executive power,” to operate under his powerful president. More sinisterly, he welcomed the progress made in removing the “sovereign rights” of nations which he defined as control of currency and control of internal and external security. In summary, Fischer said, “Political union is the challenge for this generation.”2 … (1 and 2 Ibid, “German Foreign Minister floats idea of elected EU president,” The Financial Times, July 7, 2000. This article was a report on a speech by Joschka Fischer to the European Parliament’s constitutional affairs committee.)

In related news Charles Wyplosz, director of the Geneva-based International Center for Money and Banking Studies writing in Vox.EU describes The Ukraine-Russia Deal.

The Ukraine-Russia Deal is a customs union based upon undollar, that is dollarless, economic bartering which will be replicated and serve as a template for regional governance, as leaders meet in summits to renounce national sovereignty and announce regional pooled sovereignty, thus establishing policies of diktat in each of the world’s ten regions, and schemes of totalitarian collectivism unifying all of mankind’s seven institutions, introducing diktat money to replace fiat money, for regional security stability and sustainability, as foretold in bible prophecy of Revelation 13:1-4.

Wikipedia posts On 15 August 1971, the United States unilaterally terminated convertibility of the US$ to gold. This brought the Bretton Woods System to an end and saw the dollar become fiat currency.[1] This action, referred to as the Nixon shock, created the situation in which the United States dollar became a reserve currency used by many states. At the same time, many fixed currencies (such as GBP, for example), also became free-floating.

Milton Friedman, with his Free To Choose principle, fathered the democratic nation state banker regime, headed up by the US Federal Reserve, where fiat money defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, underwrote the investor in investment choice in investing in World Stocks, VT, such as 3M Co, MMM, Nation Investment, EFA, such as Greece, GREK, and Global Financial Institutions, IXG, such as the National Bank of Greece, based upon schemes of debt trades, such as Junk Bonds, JUNK, and currency carry trades, such as the EUR/JPY.

I write with prophetic style, that is the type of writing Samuel Clough describes in Understanding The Spirit of Prophecy, Revelation 19:10. The prophetic will address an event but then add climatic language, usually in the first person for God, describing an ultimate victory or destruction always accompanied by a Divine claim of personally visiting the planet and extreme events that accompany that appearing.

We also know from I Corinthians 13 that prophecy will cease at the end of the age when Jesus comes. Therefore, the witness of Jesus given by the spirit of prophecy is forward looking but only necessary before the end of the age. In other words, it exists only to give testimony of Jesus in this age.

Therefore so long as prophecy exists, there must be a testimony of Jesus still to be given. Implied in that is that for prophecy to cease, the testimony of Jesus contained within prophecy, must no longer be necessary. In other words, in our current age which is filled with darkness, we have need of prophecy to point us forwards to a testimony of Jesus that is yet future, but when we enter an age of light we will no longer need prophecy as a testimony to Jesus. Now we know that the majesty and mystery of Jesus will be proclaimed for all eternity. Therefore prophecy is aiming at a specific testimony of Jesus that is desperately needed in this age, but not in the age to come.

In a moment or crisis, the prophet is also seeing the ultimate crisis of the end of the age. In a period of judgment, the prophet may erupt in terrifying language which is not out of character with the prophecy but rather is connecting the present prophecy with the ultimate judgment at the end of the age. The description of rulers and characters in the prophets accompanied by unusual language is serving to illustrate something concerning the Messiah or something that is anti-Messiah.

The reality is that the ultimate events of the end of the age which are the full revelation of Messiah, the ultimate judgment of all evil, and the permanent installment of the Messiah as the supreme ruler and representation of God on the earth, are intricately interwoven with every period of history. In the age to come we are going to see that all of history was an exact parable illustrating the human predicament and constantly foretelling the ultimate conclusion of the age. We are going to find that God was so kind and loving that virtually all the events of human history are illustrations of some facet of the drama concluding in the restoration of all things.

Once we understand this paradigm, we will see that the correct hermeneutic when interpreting the Scripture is far more literal than we thought it was. We read over the prophets thinking that their predictions refer only to events past and pass over the extreme language where the prophet sees a glimpse of the judgment at the end of the age in the midst of the present judgment. In reality, we were meant to consider the tragedy the prophet was confronting as a picture and then carefully consider the prophet’s language and prepare our hearts with trembling for the yet future day that the prophet was seeing.

In the Spirit of Prophecy, I relate as revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, began establishing a new order consisting of fifteen New Things in Christ, on October 23, 2013, by releasing the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse. The New Things of Christ are presented in the Dispensation Economics Manifest, which is based upon Ephesians 1:10, the biblical revelation that Jesus Christ is operating in dispensation, that is the household management plan of God to mature, complete and fulfill all things in every age.

Corollary #1 from the Dispensation Economics Manifest, presents that on October 23, 2013, the Rider on the White Horse, enabled the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, termed the “Means of Economic Destructionism,” higher from 2.48%, and thus PIVOTED the world out of the paradigm and age of liberalism to that of authoritarianism.

Investment charts show the bond vigilantes in calling the Benchmark Interest Rate, ^TNX, higher from 2.48%, on October 23, 2013, produced an” extinction event”, that caused the death of fiat money: Aggregate Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower in value.

As a result “money good” investments in the Emerging Markets, EEM, such as Brazil, EWZ, EWZS, Indonesia, IDX, IDXJ, Thailand, THD, and the Philippines, EPHE, as is seen in their ongoing Yahoo Finance Chart, started to fail.  Investors have increasingly become convinced that the monetary policies of the world central banks no longer stimulate global growth and trade, and ongoing strong levels of corporate profitability.

As a result, liberalism’s dynamos of economic activity, creditism, corporatism and globalism, are winding down.

Beginning in 2014, investors will take profits from five years of the swell in fiat wealth, and derisk out of debt trades, such as Blackstone, BX, and deleverage out of currency carry trades, such as the GBP/JPY, with the result that not only will fiat money continue to fail, but fiat wealth, consisting of World Stocks, VT, such as Prudential, PRU, Nation Investment, EFA, such as the UK, EWU, and global Financials Institutions, IXG, Lloyd Financial Group, LYG, will fail as well.

Under authoritarianism, the singular dynamo of regionalism, authoritarianism’s fathers will power up policies of regional governance and schemes of totalitarian collectivism, to provide diktat money, such as statist public private partnerships overseeing commerce, trade and the factors of production, (think in terms of the Ukraine-Russia Deal where oligarchs and nannycrats rule), enforcing debt servitude, for debt serfs living in regional gulags of austerity.

6) … In the age of authoritarianism there are only two forms of sovereign and sustainable wealth, these being diktat and the physical possession of gold bullion. Having said that there are still those who want to short well the financial market place as it turns from a bull market to a bear market; therefore I present through January 10, 2013, my Stockcharts.com chartsite where I provide ETFs which can be used as margin for a brokerage account for short selling purposes these include  STPP, HDGE, XVZ, OFF, JGBS, EUO, HYHG, SAGG, SLV, and GLD.

In related article Tyler Durden of Zero Hedge posts What could go wrong Here? US investors have turned the euphoria dial to 11 this week as the percent bullish is the highest since the peak in Fall 2007 and bears are at their lowest percentage since Spring 1987. Thus, the Bull-bear spread (based on AAII’s survey) has never been wider.

A deflationary economic bust is coming soon, out of a fast falling stock market, as investors derisk out of debt trade investments, such as asset manager, Blackstone, BX,  and deleverage out of currency carry trade investments, such as global manufacturer, 3M Co, MMM.

7) … Signs of economic deflation are now emerging. Sober Look posts 2013 Growth rates in consumer spending and income diverge.  Real personal consumption expenditures increase, while real disposable personal income decreases.

This is exactly my situation, this last year I ran up a $1,500 credit card bill, while my income decreased; leaving me in the position of being able only to pay the minimum payment which covers the 25% APR on the Kroger/ Fred Meyer credit card.

James Brewer of WSWS reports Hundreds of thousands face Christmas holidays without electricity in US and Canada. Utility monopolies like DTE Energy and Consumers Power in Michigan continue to shut off service to hundreds of thousands of homes for late or non-payment of bills

8) … NBC News reports the new normal of ice age weather As temperatures plummet, hundreds of thousands face a Christmas without power

The Rider On The White Horse Who Has The Bow Of Economic Sovereignty Terminates Nation State Democracies And The Banker Regime Of Floating Currencies … A Guide To Experiencing The Full Salvation Of God … In The Age of Recession And Authoritarianism

December 22, 2013

Financial Market Report for the week ending December 20, 2013

This report is published in Google Documents format here

1) … An inquiring mind asks, are you experiencing the full salvation of God?

Please consider the concept of “keeping Christ’s Word” as presented in Revelation 3:8  “ I know your deeds. See, I have placed before you an open door that no one can shut. I know that you have little strength, Yet you have kept My Word and have not denied my Name,” so as to experience the full salvation of God.

The Apostle John wrote from prison, while living in exile on The Isle of Patmos about 90 AD, the contents of a dream given to him by angels.

The Revelation Of Jesus Christ, which foretells those things which must shortly come to pass, these being presented in Revelation 1:1, means a series of events, that once they begin, as they did on October 23, 2013, when Jesus Christ, acting in dispensation, that is in the administration of all things economic, PIVOTED the world from the paradigm and age of liberalism into that of authoritarianism, by releasing the First Horseman of The Apocalypse, presented in Revelation 6:1-2.

The Rider on the White Horse, who has a bow, yet no arrows, symbolizing his economic sovereignty  over the world, is effecting a bloodless global coup d’état, and is transferring sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, the “Means of Economic Destructionism”, higher from 2.48%, and by steepening the 10 30 US Sovereign Debt Yield Curve, TNX:$TYX, seen in the Steepner ETF, STPP, steepening, thereby destroying fiat money.

“Keeping Christ’s Word”, while is something that was a responsibility of saints throughout the ages, is a special responsibility of the end time saint, so as to know the full salvation of God, a salvation that is produced in those living after October 23, 2013, who are both obedient to His Word and who also do not deny Christ’s Presence and Authority, as Christ has not only established a new paradigm and age, and has not only transferred sovereignty from nation states to regional nannycrats and regional bodies, and has not only destroyed fiat money, but established fifteen New Things, through the “extinction event” of opening the first seal of the scroll of end time events.

There was a death of many things on October 23, 2013. The “extinction event” was like a hard frost, that is a “killing frost”, that produced the death for example of fiat money, but not fiat wealth; it died December 20, 2013, as the Benchmark Rate Interest Rate, ^TNX, rose to 2.89%, and as the debt trade that is Junk Bonds, JUNK, and two currency carry trades, the Euro Yen, EUR/JPY, cross and the Dollar Yen, USD/JPY, cross SWELLED, the Eurozone, EZU, and the US, VTI, while at the same time a currency carry trade, the CEW/JPY, cross, DESTROYED, wealth in the Emerging Markets, EEM.

Fiat Money, is defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW. Fiat money is, better said was, coined by sovereign nation states and their banks. And in turn people used fiat money to invest in fiat wealth, like World Stocks, VT, and  educations, marriages, partnerships, personal property like real estate, and the list goes on and on.

While fiat money was made extinct, fiat wealth, that is the product of fiat money, things people invest in, continued to increase in value until the end of November  2013. Then fiat wealth, decreased in value for the first time the week ending December 6, 2013, and then decreased in value for the second time the week ending December 13, 2013, as is seen in the Weekly Charts of World Financials, IXG, Nation Investment, EFA, and World Stocks, VT,  and then rallied back up the week ending December 20, 2013.

Wikipedia’s Timeline of Extinctions, should include fifteen New Things, such as investment choice, but doesn’t, because it does not give consideration to dispensationalism, which is defined as as the concept that Jesus Christ is exercising administrative management of all things in each of mankind’s ages, to make them full, Ephesians 1:10, Ephesians 3:2, Ephesians 3:9, Colossians 1:25.

Dispensationalism comes from Strong’s Greek word oikonomia, #3622, dispensation, and means household dispensing, household stewardship, household management and economic oversight of property for the completion of every age, era, and epoch and time period. Dispensations are time of mercy and judgment.

Dispensationalism produces both the “saints” and the “aints”.

MB-Soft relates Dispensational theology grows out of a consistent use of the hermeneutical principle of normal, plain, or literal interpretation. This principle does not exclude the use of figures of speech, but insists that behind every figure is a literal meaning. Applying this hermeneutical principle leads dispensationalism to distinguish God’s program for Israel from his program for the church. Thus the church did not begin in the OT but on the day of Pentecost, and the church is not presently fulfilling promises made to Israel in the OT that have not yet been fulfilled.

The Dispensation Economics Manifest, that is the dispensation ideology, is the foundation for a life experience of economic action in the person of Christ, having His virtue and ethics, and this establishes one as elect, living in spirituality and righteousness, separating from fiat who live in death, carnality and iniquity.

As revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is establishing a new order consisting of fifteen New Things in Christ, on October 23, 2013, by releasing the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse. The New Things of Christ are presented in the Dispensation Economics Manifest, which is based upon Ephesians 1:10, the biblical revelation that Jesus Christ is operating in dispensation, that is the household management plan of God to mature, complete and fulfill all things in every age.

Corollary #1 from the Dispensation Economics Manifest, Christ is establishing the new normal of a new paradigm and age. As the bond vigilantes on October 23, 2013, have PIVOTED the world out of the paradigm of liberalism to that of authoritarianism, by calling the Interest Rate on the US Ten Year Note, ^TNX, the “Means of Economic Destructionism”, higher from 2.48%.

Liberalism was characterized by inflationism. Monetary inflation, that is credit inflation, seen in Aggregate Credit, AGG, increasing in value, and currency inflation, seen in Major World Currencies, DBV, and Emerging Market Currencies, CEW, likewise rising in nominal value, fueling economic growth and global trade, where the banker regime financialized nation state fiat money and energized fiat wealth with both debt trade investing and currency carry trade investing.

The affect of The Rider on the White Horse is fiat money destruction, as investors no longer trust that the monetary policies of the world central banks to stimulate global economic growth and global trade. Investors, in particular the bond vigilantes, believe that the world central banks’ monetary policies have crossed the rubicon on sound monetary policy and have made “money good” investments bad, and have been acting in debt deflation together with the currency traders to profit from the destructionism of the First Horseman of The Apocalypse. His ride is just the beginning of sorrows.

Authoritarianism is characterized by destructionism. Monetary deflation, that is credit deflation, where Aggregate Credit, AGG, World Government Bonds, BWX, European Debt, EU, fall in value, and currency deflation, Major World Currencies, DBV, Emerging Market Currencies, CEW, decrease in value, as seen for example in the Ambrose Evans Pritchard report Eurozone M3 money plunge flashes deflation alert, and stimulating investors to derisk out of fiat wealth, that is World Stocks, VT, as is seen in the Risk Off ETN, OFF, rising in value, which terminates global economic growth and global trade, and introduces economic recession, where the beast regime of regional governance and totalitarian collectivism rules via diktat money. The nation state banker regime that produced fiat money, and for economic growth, and investment gain, being part of liberalism, is gone forever.

Eurzone stocks, EZU, and European Financials, EUFN, slumped beginning the week ending December 6, 2013. The Netherlands, EWN, was a Euro Yen, EUR/JPY, currency carry trade darling; now investors consider the nation and its companies, AEGON, AEG, ASML Holding, ASML, Reed Elsevier, ENL, ING Group, ING, Koninklijke Philips Electronics, PHG, and Vistaprint, VPRT, to be dogs and are selling them strongly, on a Bloomberg report of the ECB’s Mario Draghi Mandate that prevents lenders from using future loans it provides to buy sovereign debt.

Likewise, the UK, EWU, which was a British Pound Sterling Yen, GBP/JPY, favored currency cross, slipped the week ending December 13, 2013, as investors derisked out of Prudential, PUK, WPP, WPPGY, ARM Holdings, ARMH, Diageo, DEO, Reed Elsevier, RUK, Smith & Nephew, SNN, and Lloyds Banking Group, LYG, in ongoing trepidation of the outcome of the ECB’s Mario Draghi Mandate.

Liberalism was characterized by economic growth coming by the operation of the dynamo of creditism, corporatism and globalism, which bubbled up Total Credit, as presented in Federal Reserve Chart of TCMDO to stand at 58,082 Trillion, as of QE 2013. Benson te presents the concept that the UK’s economic growth was due to the growth of credit, and provides BoE documents showing credit growth in real estate, hotel and restaurants and construction, beginning when the BoE began it second wave of QE in late 2011.

MyBudget360 posts The sweet spot in life under liberalism came through credit. It came via the crack up boom liberality of the world central bankers monetary authority, in particular the Bernanke put in late 2010 with QE2, and getting leveraged up, on debt trades, currency carry trades, and margin credit, together with a sell of gold, to experience economic life in economic systems such as clientelism, crony capitalism, European socialism, Greek socialism, and Chinese communism.

Liberalism produced the maximum quantity of investment stimulus possible. As of Friday December 13, 2013, the world stood at peak investment stimulus supply, as is seen in the topping out of both Junk Bonds, JNK, and the EUR/JPY, producing peak fiat wealth on December 2, 2013, seen in Global Financials, IXG, Nation Investment, EFA, and Nation Investment, VT, and Yield Bearing Investments, such as Energy Production Companies, XOP, Energy Partnerships, AMJ, and North American Energy Partnerships, EMLP, having topped out.

Jesus Christ is acting in dispensation, that is He is maturing,  and completing authoritarianism, through releasing all of the Four Horsemen of the Apocalypse to accomplish a deflationary bust, seen in Revelation 6:1-8, and bringing it to its zenith through debt servitude, where there will be an ever increasing crushing economic recession and austerity, as one experiences economic life in the dynamo of regionalism, as is foretold in Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:7.

The benefit for the believer of being aware of, seeing, and experiencing the ride of the Four Horsemen of the Apocalypse, seen in Revelation 3:1-8, is that one comes to experience the worst of life’s hardships, enabling God’s salvation to take hold fully and finally.

One’s grace for receiving the full salvation of God comes from practicing His Word in speech and action, as well as respecting His presence and authority as presented in Revelation 3:8: I know your deeds. See, I have placed before you an open door that no one can shut. I know that you have little strength, Yet you have kept my Word and have not denied my Name.

2) … Going into the week of December 16, 2013, to December 20, 2013,

A stock broker might encourage yield bearing investments, such as Energy Producers, XOP, presented in this Finviz Screener, as well as Energy Partnerships, AMJ, and North American Energy Partnerships, EMLP; yet these have topped out in value, as the bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013. With the bond vigilantes and currency traders successfully carrying out a war of debt deflation against the world central bankers, one should shun these investments.

The Investor’s Weather Vane ETFs, Call Write Bonds, CWB, is topping out  and Volatility ^VIX, ETFs, TVIX, VIXY, VIXM, are plummeting; establishing that the long running bull market has run its course and is turning into a bear market.

The ten ETFs, STPP, HDGE, XVZ, OFF, JGBS, EUO, HYHG, SAGG, SLV, GLD, seen in this Finviz Screener are bottomed out, and could be used as a basis of margin for a short selling account.  For a while I present these at no cost to investors in my Stockcharts.com Chartsite

CP of Credit Bubble Stocks posts Credit spreads lowest since October 2007  “The bottom line is that people have a lot of cash, and there’s a willingness to put it to work,” Mish said in a telephone interview. “I’m not saying that’s the prudent thing to do, but irrespective of the return forecast we have for next year, there’s a significant feeling that people need to earn more than zero.”

Many investors failed to invest in QE’s riskless trade, and having seen equity investments, such as Dividend Growth, VIG, and World Stocks, VT, grow in value, as well as credit investments, such as  Junk Bonds, JNK, and Distressed Investments, FAGIX, increase in value, are expressing a desire for “return on investment”.  Investors should consider that even “return of capital” is at risk, in what has been safe investments, such as Short Term Corporate Bonds, FLOT, and US Short Term Government Notes, SHY, as the bond vigilantes call the Benchmark Rate, ^TNX, ever higher from 2.86%.

During the week ending December 13, 2013, Global Financials, IXG, led Nation Investment, EFA, and World Stocks, VT, lower, as the Bond Vigilantes continued calling the Benchmark Interest Rate, ^TNX, higher from 2.8%, and steepening the 10 30 US Sovereign Debt Yield Curve.

The bond vigilantes in calling the Benchmark Rate, ^TNX, higher from 2.8%,  and in steepening the 10 30 US sovereign debt Yield Curve, $TNX:$TYX, are effecting eight pivotal economic and investment changes: 1) destroying Banks, IXG, worldwide,  2) destroying the sovereignty and seigniorage of nation states, EFA, such as debt impaired Italy, EWI, global trade South Korea, EWY, global industrial mining Australia, EWA, the current account deficit BRICS, EEB,  3 and 4) destroying global industrial production and global growth,  5) and are destroying yield investment in Real Estate, IYR, Global Real Estate, DRW, and Global Utilities, DBU, Utilities, XLU, Global Telecom, IST, Global Health Care, IXJ, and Health Care Provider, IHF, and Medical Devices IHI, as is seen in the ongoing Yahoo Finance chart of DRW, IST, PSP, DBU, IXJ, and IHI,  6) investment in consumer spending,  7) investment in infrastructure development, as is seen in the ongoing Yahoo Finance Chart of PKB, CHXX, INXX, BRXX, 8) energy production, XOP

And, the currency traders in selling currency carry trades reinforces the destructionism of bond vigilantes. For example, the currency traders have followed on the heels of the bond vigilantes by selling the Swedish Krona Japanese Yen cross, SEK/JPY, FXS:FXY, destroying nation investment in Sweden, EWD, and its consumer goods producer and automobile parts manufacturer, ALV.

In short the bond vigilantes, by calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.80%, and the currency traders by selling currency carry trades, have have introduced financial market risk, into what was under QE a riskless trade, and have PIVOTED the world out of the paradigm and age of liberalism and into that of authoritarianism. Their combined actions are unleashing waves of recession, and societal strife, such as in the WSW report, Italy’s Pitchfork Movement and The Telegraph report Italy’s president fears violent insurrection in 2014 but offers no remedy;  and are commencing Kondratieff Winter. Truly the Benchmark Interest Rate, ^TNX, can be called the “Means of Economic Destructionism”.

The Elliott Wave 3 of 3 Up that commenced with the bond vigilantes calling the Benchmark Interest Rate, $TNX, higher from 2.48%, on October 23, 2013, will be seen in the Risk Off ETN, OFF, trading higher, and will be unleashing destructionism replacing inflationism, as it has already PIVOTED the world out of the paradigm and age of liberalism and into that of authoritarianism. The Elliott Wave 3 of 3 Waves are the most sweeping of all waves, they create the bulk of wealth on the way up, and destroy most of the wealth on the way down. This wave will make the bankers holding Interest Rate Swaps, that came as part of liberalism’s POMO, awesomely wealthy.

An investment demand for gold will be commencing as fiat money, and now fiat wealth, will be turning lower in value, both collapsing into the Pit of Financial Abandon. Under authoritarianism, the only two forms of sovereign wealth and sustainable wealth will be the physical possession of gold bullion and diktat; the only form of bartering wealth will be silver bullion and sexual services.

CP of Credit Bubble Stocks presents Total Debt (Credit Market Instruments) Vs Money Supply.  Please consider the concept Total Credit is a component of fiat money, and the other component of  fiat money is Major World Currencies, DBV, and Emerging Market Currencies, CEW.  And please consider that M2 Money, is fiat wealth, not fiat money, even though it has the word money in it.

Fiat money produces fiat wealth, or better said produced (that is past tense) fiat wealth,such as World Stock, VT, and personal property such as realeEstate (like a physical structure that is lived in), Commodities, DBC, such as Corn, CORN, and Wheat, WEAT. both of which have bottomed out in value.

While M2 Money, has the word money, in it, M2 Money is the combination of things like savings accounts, and thus is fiat wealth; think and remember savings accounts are like stock investments such as World Stocks, VT; M2 Money is something that fiat money produced, and thus is fiat wealth.

A key concept here is that fiat money died on October 23, 2013, when the bond vigilantes called the  Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, but M2 Money, a form of fiat wealth is now topping out at 10,971.8, as is seen in M2 Money Stock Report.

The importance of CPs article is two fold: First, Total Credit which is reported Quarterly most likely has already turned lower in value, and we will likely see this in the fourth quarter report. Second, M2, Money is likely to turn lower in the week ending December 27, 2013.

I am not a libertarian, that is one who lives out of the economic concept of freedom. Rather, I am a dispensationalist economist, who lives out of the person of Christ.

I present Corollary #1 from the Dispensation Economics Manifest: Jesus Christ, operating in dispensation, that is economic action for the fulfillment and completion of every age, PIVOTED, the world from the paradigm and age of liberalism into that of authoritarianism, on October 23, 2013, by opening the First Seal of The Scroll of End Time Events, thus enabling the Rider on The White Horse, who has a bow without any arrows, to empower the bond vigilantes to commence calling the Interest Rate on the Ten Year Note, ^TNX, the “Means of Economic Destructionism”, higher from 2.48%, destroying fiat money, and to begin destroying fiat wealth, VT, as well as Nation Investment, EFA, and Global Financial Institutions, IXG, something that was done through debt deflation by the currency traders selling the Major World Currencies, DBV, the week ending December 13, 2013, and the Emerging Market Currencies, CEW, the week ending December 20, 2013.

Under liberalism bankers, corporations, government, entrepreneurs, and investors of nation state democracies were the legislators of economic value and the legislators of economic life that shaped one’s means and one’s ends. In contrast, under authoritarianism, currency traders, bond vigilantes and nannycrats working in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

Obamacare is at the leading edge of authoritarianism replacing liberalism. Obamacare is literally destroying America’s system of health care. And Obamacare is causing strong disinvestment out of the defensive sectors Medical Devices, IHI, and Health Care Providers, IHF.

Of note the bond vigilantes in calling the Interest Rate on the US Ten Year Note, ^TNX, higher, have caused disinvestment out of the defensive sectors, Consumer Staples, KXI, and Small Cap Consumer Staples, PSCC, while Consumer Discretionary, RXI, and Small Cap Consumer Discretionary, PSCD, have maintained investment, being more risky. Said another way, risk appetite has been ongoing for Consumer Discretionary, as is seen in IYC, manifesting what is likely an evening star chart pattern.

Libertarian G. Edward Griffin in interview with The Daily Bell, speaks on Globalism, Collectivism And Right Principles.

Daily Bell: Public banking types – those who want a central bank controlled by “the people” – continue to attack libertarian websites for proposing that gold is money. They believe all gold is owned by central banks and elite families and their colleagues. Is this so? Don’t plenty of average people own gold, especially in China and India? Why is this issue never addressed by public banking proponents?

G. Edward Griffin: Now to the main issue, in my view. Just because the banks hold a lot of gold and just because they like gold, the question is why then aren’t they in favor of money being backed by gold? The argument is made, why should we have money backed by gold because that would be to the advantage of the bankers, who own it all? Isn’t that the argument? So the question is, then, how come the banks are the leading opponents of backing a money system with gold?

The answer is found in just reflecting here for a moment as to how banks make their money. They make their money by charging interest on loans. So the more money they have to loan, the more money they make. If currency is backed by gold then that limits the quantity of money that can be loaned. The banks can only loan an amount of money equal to what they have in their vaults in the form of gold and that’s it. There’s nothing more.

Once you wrench the money supply away from gold, now they can create money out of nothing, as we’ve seen happen in the last decade, at least since 2008. Between the banks and their partners in government they’ll just create trillions of dollars in a single afternoon, not based on anything except credit, and then they can loan that money and collect interest on trillions of dollars that doesn’t even exist.

Daily Bell: What are the top men of central banking interested in? Are they in it for the usury or are they in it for control? This is a major and profound question, in our view.

G. Edward Griffin: The top bankers are interested in it for the usury but their partners in politics are interested in it for control and it’s hard to say which is which, between the two of them, because it’s a revolving door now. I would say central banks, or the big banks that comprise the central banks, and governments now are welded together into one solid piece. It’s hard to distinguish or pull them apart. So the answer to that question is both usury and control. We have to rise above that and focus on the ideas these individuals are pursuing. That’s where FreedomForce comes in. We’re trying to get people to understand this ideology of collectivism and to understand its superior alternative, which is called individualism. If we can get a better understanding of those concepts, then that result will move into the political world and it will change the balance of power at an issues level because people who have the right principles in mind will know how to apply those principles in all of the issues. That’s kind of a vague answer to your question about whether there are certain areas of the world we should be paying attention to but I really think if we just are trying to engage ourselves on specific issues, war in the Middle East, Obamacare and so many others, we may solve one or two but meanwhile these guys with the collectivism mentality are setting more fires out there, more fires than we can put out. So we’ve got to get back to principles, I think, if we’re going to make any change in the long view.

Mr Griffin focuses on the critical life concept of collectivism. I respond that on October 23, 2013, Jesus Christ opened the First Seal of the Scroll of end time events, and PIVOTED the world out of the paradigm of liberalism to that of authoritarianism, by releasing The Rider on the White Horse, who has a bow, yet no arrows, symbolizing his economic soveignty over the world, who is effecting a bloodless global coup d’état, and who is transferring sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, “the Means of Economic Destructionism”, higher from 2.48%.

Now under authoritarianism, regionalism, not creditism, not corporatism, and not globalism, being the dynamo of economics, currency traders, bond vigilantes and nannycrats working in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.  Welcome to totalitarian collectivism; it’s the complement of regional governance; this being foretold by John The Revelator in Revelation 13:1-4. The Beast regime is rising to rule the world. Soon out of the Club Med crisis of sovereign insolvency and banking insolvency, it will establish policies of diktat of regional governance in every one of the world’s ten regions, and schemes of totalitarian collectivism in every one of mankind’s seven institutions.

3)  … This week’s investment activity: It’s a week of a swelling debt trade, seen in Junk Bonds, JNK, maintaining its strength, and two swelling currency carry trade, seen in Action Forex, EUR/JPY, and in Action Forex, USD/JPY, cresting wealth in the US, VTI, and the Eurozone, EZU; and a smashing currency carry trade, CEW/JPY, destroying wealth in the Emerging Markets, EEM, as the Fed Announcement of Tapering was neither hawkish or dovish.

As foretold in bible prophecy in Revelation 13:1-4, out of waves of Club Med sovereign insolvency and banking insolvency, the Beast Regime of regional governance and totalitarian collectivism, will rise to replace the Banker Regime, consisting of the Creature from Jekyll Island, the US Dollar Hegemonic Empire, and the Speculative Leveraged Investment Community, all courtesy of The Rider on the White Horse, who was released on October 23, 2013, … who having the Bow of Economic Sovereignty is terminating the monetary authority of democratic nation states, putting their currencies to death, and is transferring monetary authority, from central banks to regional nannycrats, who will meet in workgroups to provide statist public private partnerships, mandate regional economic policies, and coin diktat money, ie levies on bank accounts, and ie confiscation of investment accounts should financial institutions fail, which provides seigniorage of diktat, all to establish regional security, regional stability, and regional sustainability, within a framework of totalitarian collectivism, assuring debt servitude and shared austerity.

Liberalism’s fiat money, the coinage of central banks like the US Fed, is as dead as a doornail; witness the Australian Dollar, FXA, falling, and taking down, Australia, EWA, and Australia Small Caps, KROO, as well as the Swedish Krona, FXS, crumbling and taking down Sweden, EWD. The central banks are all white washed tombs filled with dead mens bones. The bond vigilantes, being in control of the Benchmark Interest Rate, ^TNX, have the “Means of Economic Destructionism”  and are acting together with the currency traders to affect debt deflation. Through the dynamos of creditism, corporatism, and globalism, risk assets bubbled up prosperity.

Authoritarianism’s diktat money, the coinage of nannycrats, such as ECB’s Mario Draghi, and Germany’s Wolfgang Schäuble, is coming simply out of mandate, as well out of regional summits such as that which produced the EU Banking Union. Through the singular dynamo of regionalism, diktat enforce austerity.

On Monday December 16, 2013. Investment Bankers, KCE, and the fiat wealth that decreased the most through debt deflation since October 23, 2013 rallied, in anticipation of Fed Speak on Wednesday.

Global Financials, IXG, 0.7% … European Financials, EUFN 1.6, India Earnings, EPI 1.1, Investment Bankers, KCE 1.6, Regional Banks, KRE 1.5, Stockbrokers, IAI, 0.7, The Too Big To Fail Banks, RWW 0.6. Asset Managers, such as Blackrock, BLK, seen in this Finviz Screener, rose strongly.

World Stocks, VT, 0.7% …  Solar Energy, TAN 1.5, Networking, IGN 1.4, Resorts and Casinos, BJK, 1.4;  Small Cap Industrials, PSCI 1.2, Global Industrial Producers, FXR 1.0, Small Cap Consumer Discretionary, PSCD 1.0, Internet Retail, FDN 1.1, IPOS, FPX 1.1, Steel Manufacturers, SLX 0.9, Semiconductors, SMH, 0.7, Small Cap Pure Value, RZV 0.6, Timber Producers, WOOD, 0.7%, with companies seen in this Finviz Screener, rising strongly, and Design Build and Construct, FLM, 0.7%, with companies seen in this Finviz Screener, rising strongly.

In closed end funds, Calamos Equity, CSQ 1.0%. The ratio of the closed end equity to closed end debt CSQ:PFL, rose to an all time high documenting the terrific amount of margin credit that is leveraging stocks higher.  Mastercard, MA  rose 1.1% to a new rally high.

Ed Yardeni writes Retail sales rising along with solid earned income gains, but Retail, XRT, trades up only 0.30%, documenting that indeed a bear market is underway as a good investment report is unable to aggressively drive these consumer stocks higher.

Yield Bearing Stocks, Dividend Growth, VIG, 0.60% … with Global Telecom, IST 0.80%; AES Corp, AES, 2.1% led Utilities, XLU, 0.7%.

Nation Investment, EFA, 0.70% … US Small Caps, IWM, 1.2 rallying on Regional Banks, KRE, and The Too Big To Fail Banks, RWW, trading higher. Eurozone Stocks, EZU 1.4 rallying on EUFN trading higher. Italy, EWI, Spain, EWP, Netherlands, EWN, and Ireland, EIRL, led the Eurozone, EWU, higher, as the European Financials, EUFN, traded higher. South Korea, EWY 1.3, Sweden, EWD 0.7, Brazil, EWZ 0.7, Russia, RSX 0.7, India, INP 0.8, and Nikkei, NKY, -0.4

Natural Gas, UNG, traded lower, driving StealthGass, GASS, and Greece, GREK, lower. StealthGas is a ship owning company, headquartered in Athens,  serving the liquefied petroleum gas sector of the international shipping industry. StealthGas currently has a fleet of 38 LPG carriers. The Company has agreed to acquire 15 newbuilding LPG carriers, with expected deliveries in 2014 and 2015. Once the acquisition of the 15 LPG carriers is completed and the vessels are delivered, StealthGass LPG carrier fleet will be composed of 53 LPG carriers with a total capacity of 257,922 cubic meters.

Evidence that the stock market has pivoted from a bull market to a bear market is seen in Transports IYT, is selling off , while the Industrials, IYJ, is jumping higher.

Gold Miners, GDX, 1.2%, on Gold, GLD, 0.2%; and Silver Miners, SIL, 0.8%, on Silver, SLV, 1.4%.

Wheat, WEAT, and Corn, CORN, traded lower to new rally lows.

From Open Europe, we see the political rise of one authoritarianism’s fathers; yes, all things have fathers, and Jörg Asmussen is a father of authoritarianism who is leaving the ECB to join new German government. Open Europe relates FT FT 2 City AM FAZ FAZ 2 FAZ: Georgie FAZ: Kohler Süddeutsche Süddeutsche: Prantl EUObserver Reuters Deutschland Handelsblatt Spiegel Euractiv European Voice BBC Bild WSJ Le Figaro Independent Handelsblatt. that following the SPD membership’s approval of the grand coalition agreement with 76% of votes, the German government revealed the make-up of its new cabinet.

The big surprise comes as Jörg Asmussen steps down, for personal reasons, from the ECB Executive Board to become Deputy Labour Minister. The front runner to replace him is Sabine Lautenschläger, vice-president of the Bundesbank. Elsewhere the SPD’s Frank-Walter Steinmeier returns as Foreign Minister, while Sigmar Gabriel takes over a combined portfolio of Economy and Energy.

The CDU’s Ursula von der Leyen, often tipped as a successor to Chancellor Angela Merkel, takes over as Defence Minister, the first woman to hold the post in Germany. CSU’s Hans-Peter Friedrich is moved from Interior Minister to Agriculture Minister, while Wolfgang Schäuble stays on as Finance Minister. Overall, the CDU holds five ministries, the CSU three and the SPD six. Open Europe’s Raoul Ruparel appeared on CNBC Squawk Box Europe this morning discussing the implications of the new cabinet set up.

Bloomberg reports Shanghai Glut Rises With Tallest Tower: Real Estate. When completed in 2015, the Shanghai Tower will be China’s tallest building. The 632-meter (2,074-feet) skyscraper will also deepen a glut of offices in the city, putting pressure on rents. The project, in the Lujiazui financial district, will add 220,000 square meters (2.4 million square feet) of office space, or more than 10 percent of the new supply forecast for the city in 2015, according to RET Property Consultancy Ltd. About 2 million square meters of grade-A offices will be added between 2014 and 2015, more than double the supply in the previous two years, according to broker Savills Plc.

Ambrose Evans Pritchard of the Telegraph reports Fresh recession risk in France threatens political crisis. The threat of recession is a major upset for President François Hollande, who has talked up recovery and confidently declared the crisis over.

Although not one of the PIGS, an emerging recession in France highlights the failure of European Socialism as an economic system under liberalism. France, EWQ, in fact most of the Eurozone, EZU, excluding the Netherlands, EWN, and Ireland, EIRL, piggy backed on the Euro to maximize national wage contract laws to benefit unions, creating a type of clientelism, that created a high standard of living bubble; that bubble is now bursting. France has a terrific amount of municipal debt, that cannot be and will not be repaid. Dexia Bank worked with France to securitize the debt and make lucrative deals selling the high yielding credit to US Money Market Funds. The Eurozone, EZU, the European Financial Institutions, EUFN, the Euro, FXE, as a currency, and Eurozone Debt, EU, comprise a massive black hole of sovereign insolvency and banking insolvency, out of which the beast regime of regional governance and totalitarian collectivism will rise to rule the world as foretold in bible prophecy of Revelation 13:1-4.

On Tuesday, December 17, 2013, Global Financials, IXG, traded lower, leading World Stocks, VT, and Nation Investment, EFA, lower.

Global Financials, IXG, traded lower on lower India Banks, IBN, HDB, Chinese Financials, CHIX, The National Bank of Greece, NBG, and Spain’s Bank, SAN.

World Stocks, VT, traded lower with Solar Energy, TAN, Semiconductors, SMH, and Networking, IGN, trading higher; and Global Real Estate, DRW, Biotechnology, IBB, Health Care Provider, IHF, Global Consumer Staples, KXI, trading lower; the latter led lower by a lower Tyson Foods, TSN, Kimberly Clark, KMB, Clorox, CLX, Proctor Gamble, PG, Ingredion, INGR, Ecolab, ECL, International Flavors, IFF, Hersheys, HSY, and ConAgra, CAG. Gold Miners, GDX, traded lower on a lower price of Gold, GLD; and Silver Miners, SIL, traded lower on a lower price of Silver, SLV.

Nation Investment, EFA, traded lower with Argentina, ARGT, trading higher; and Turkey, TUR, Australia, EWA, KROO, New Zealand, ENZL, Mexico, EWW, China, YAO, Italy, EWI, Spain, EWP, and Greece, GREK, trading lower.

The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.84%

Mike Mish Shedlock writes  Laughable Eurozone banking “non-union”; Expect disorderly breakup The eurozone ministers ought to focus on a meaningful task: how best to break up the eurozone with minimal disruption; unfortunately, they won’t.

I respond, Yes, how true, they will not do so; they can’t as they have a different destiny as presented below.

Mr. Shedlock continues, the resultant eurozone breakup will prove to be very disruptive. The only other possibilities (and I have mentioned them before) are 1. slow growth and extremely high unemployment in the peripheral countries for another decade 2. Germany and the Northern countries pony up hundreds of billions of euros in more support (debt forgiveness, not loans).  Pick your poison, but a breakup is the most likely result.

If one goes by Austrian economics thinking, then yes a breakup is extremely likely. But if one goes by Dispensation economics thinking, then regional governance and totalitarian collectivism is a certainty.

The Revelation Of Jesus Christ, which foretells those things which must shortly come to pass, these being presented in Revelation 1:1, means a series of events, that once they begin, as they did on October 23, 2013, when Jesus Christ, acting in dispensation, that is in the administration of all things economic, PIVOTED the world from the paradigm and age of liberalism into that of authoritarianism, by releasing the First Horseman of The Apocalypse, presented in Revelation 6:1-2.

The  the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his economic soveignty over the world, is effecting a bloodless global coup d’état, and is transferring sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, “The Means of Economic Destructionism”, higher from 2.48%, and by steepening the 10 30 US Sovereign Debt Yield Curve, thereby destroying fiat money, as well as fiat wealth in the Emerging Markets, EEM.

Eurzone stocks, EZU, and European Financials, EUFN, slumped beginning the week ending December 6, 2013. The Netherlands, EWN, was a Euro Yen, EUR/JPY, currency carry trade darling; now investors consider the nation and its companies, AEGON, AEG, ASML Holding, ASML, Reed Elsevier, ENL, ING Group, ING, Koninklijke Philips Electronics, PHG, and Vistaprint, VPRT, to be dogs and are selling them strongly, on the Bloomberg report of the ECB’s Mario Draghi Mandate that prevents lenders from using future loans it provides to buy sovereign debt.

This debt deflation is in addition to the bond vigilantes who have been calling the Benchmark Interest Rate higher from 2.48% on October 23, 2013, destroying Aggregate Credit, AGG, has PIVOTED the world out of the paradigm and age of liberalism and into that of authoritarianism.

With the ECB’s Mario Draghi Mandate, the moment of truth for European Nations, EZU, from North to South, and their Banks, IRE, NBG, SAN has arrived. The seigniorage of OMT has been removed, and the nations and their banks must now rely on the traditional sovereign debt market place. One can review how well they are doing, in the combined ongoing Yahoo Finance chart of EZU, and IRE, NBG, and SAN, as the facts shows investors derisking out of the Eurozone and its banks.

Just as the Chairman’s OMT, was precedent setting, bringing forth the culmination of liberalism, in like manner the Chairman’s Mandate, is precedent setting in fathering authoritarianism. Just as Milton Friedman was the father of liberalism, with his Free To Choose Script, so Mario Draghi is the father of authoritarianism, with the ECB Mandate of December 6, 2013, that prevents lenders from using future loans it provides to buy Treasury Debt, which is traded by the ETF, EU.

The Eurozone banks are currently loaded to the gills will debt that can be paid, and is debt that can’t be sold; clearly the EU banks are insolvent financial institutions. And Club Med nations are in a bind because no one will finance their treasury debt. So not only does the EU have a massive banking problem. And with the ECB’s Mario Draghi Mandate of December 6, 2013, the PIGS have a massive nation state financing problem; clearly the PIGS are insolvent nations.

Jesus Christ purposed liberalism, to be the age of the banker-democratic nation state regime, based upon debt trade investing and currency carry trade investing, all for the investor’s investment choice and to develop a hegemonic US Dollar Hegemonic Empire. God never intended for freedom to last, He purposed to develop a United States of America, once the nation of liberty, to be usurped, and to evolve for over a period of 100 years, that is from 1913 to 2013, to become the lair for the banker regime of fiat money creation for global economic growth based upon the dynamos of creditism, corporatism, and globalism.

Jesus Christ, acting in dispensation, that is the economic and political oversight of all things, is establishing authoritarianism, to be the age of the beast totalitarian collectivist and regional governance regime, based on debt servitude, all for the debt serf’s obedience to diktat. Out of Eurozone banking insolvency and sovereign insolvency, leaders will meet in summits, to renounce national sovereignty, and announce regional framework agreements which establish regional pooled sovereignty, where there will be one bank, one government, and one currency, one debt union, and one fiscal union, that is a One Euro Government, a European Super State, for all of Europe’s people, this is clearly seen as the dynamo of regionalism operating in bible prophecy of Revelation 13:1-4.

On Wednesday, December 18, 2013, Going into today, the two great levers of liberalism’s wealth, that is the debt trade,seen in  Junk Bonds, JNK, at 40.63, and the Euro Yen Currency Carry Trade, EUR/JPY, at 141.36, stand at their rally highs, underwriting the value of World Stocks, VT.

Specifically, going into today, highly speculative leveraged wealth investments such as Leveraged Buyouts, PSP, and other ETFs, FPX, RZV, FDN, RZG, PNQI, PJP, CSD, BJK, SOCL, PSCD, stand at or near their rally highs.

An inquiring mind asks, what was liberalism? Remember it ended on October 23, 2013, when fiat money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, died, and the US Fed and other central banks that generated the medium of exchange, died, as the bond vigilantes called the Interest Rate on the US Dollar ^TNX, “The Means of Economic Destructionism”, higher from 2.48%, putting an end to the banker democratic nation state regime, fathered by Milton Friedman, and his Free To Choose floating currency principle.

Liberalism was not as the classical libertarians think, an age of liberty and freedom from the state. HA HA, HA, nope it wasn’t.  Anyone who believes that is thinking from the wrong basis.

God, that is Jesus Christ, designed liberalism as the age of investment choice, underwritten by trade in the most toxic of debt, and trade in the most power of currency crosses. Said another way, Liberalism was the age of investment choice, that was based on debt trade, and currency carry trade investing, operating out of the dynamos of creditism, corporatism, and globalism.

God purposed from eternity past that Liberalism produce the most moral hazard based wealth experience possible, so as to promote his US Dollar Hegemonic Empire to be a global kick-ass, might makes right, world hegemon, as something vastly superior to its predecessor, the British Empire.

Anyone who believes otherwise is simply practicing “will worship” out of philosophy or religion.

There are a whole spectrum of economists, from Austrian Economists promoting Libertarianism to Trotsky Socialists promoting Trotskyism, all of who have identity and experience out of fiat human philosophy.

Dispensationalist economists have identity and experience out of the concept of Dispensationalism, and believe that Jesus Christ has released The First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing economic sovereignty, and has PIVOTED the world from the age and paradigm of liberalism to that of authoritarianism, and that the monetary authority and monetary policies of the US Fed, and other world central banks in QE, Abenomics, and other Global ZIRP policies, have crossed the rubicon of sound monetary policy, and have destroyed fiat money, and have destroyed Emerging Market Stocks, EEM, and are going to soon destroy the whole spectrum of fiat wealth, that being Global Financials, IXG, Nation Investment, EFA, and World Stocks, VT.

Jesus Christ is working his plan to establish authoritarianism, as the most debt servitude experience possible, and He is doing this by bring forth the Beast Empire of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, which is synonymous with the Two Foot, and Ten Toed Kingdom, seen in Daniel 2:25-45, as well as the Terrible and Exceeding Strong Beast, of Daniel 7:7

If one believes otherwise, one is seeing a mirage, or is dreaming, on the Authoritarian Desert of the Real, and is going to have a very sharp awakening. If one believes that stocks are moving higher much longer, that is stimulated consistently higher, through the debt trade or currency carry trade investing, then one is just dreaming on some investment island.

The dynamos of creditism, corporatism, and globalism are dead and gone, something that belonged to the former age of liberalism and investment choice, and that the singular dynamo of regionalism is at work in the current age of authoritarianism and debt servitude.

One’s former economic father, Milton Friedman, and his design, of nation states and floating currencies, is no longer life’s paradigm, this evidenced by sinking currencies, such as the Australian Dollar, FXA, and the Brazilian Real, BZF.

The current economic father is Mario Draghi, and his design, of regional governance and totalitarian collectivism is life’s paradigm, this evidence  by the ECB’s Chairman Mandate that prevents lenders from using future loans it provides to buy sovereign debt

In early morning trading, the Nikkei, NKY, traded higher on rumors of an imminent announcement by Prime Minister Shinzo Abe of the details of his Abenomics Third Arrow, while Australia, EWA, collapsed, sharply lower continuing a trend that began October 23, 2013.

At midday, on December 18, 2003, Reuters reported Fed cuts bond buying in first step away from historic stimulus. As soon as the US Federal Reserve Announcement of Tapering was released, the bond vigilantes exerted control over the Benchmark Interest, ^TNX, and called the “Means of economic Destructionism”, higher once again to 2.88%. Fiat Money, that is Aggregate Credit, AGG, and Major World Currencies, such as the Japanese Yen, FXY, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, traded lower on the US Federal Reserve Announcement of Tapering, communicating the ongoing failure of fiat money.

The US Federal Reserve Announcement of Tapering is the Fed’s subtle acknowledgement that its monetary policies of QE have crossed the rubicon of sound monetary, caused the failure of fiat money, and in turn made money good investments, such as the Emerging Markets, EEM, bad; confirmation comes from the Bloomberg report Emerging stocks head for longest weekly losing streak since June.

And the US Federal Reserve Announcement of Tapering is also the Fed’s subtle acknowledgement that QE has commenced economic destructionism, specifically causing the failure of global economic growth in Brazil, EWZ, Thailand, THD, Indonesia, IDX, the Philippines, EPHE, Peru, EPU, Chile, ECH, Australia, EWA, and New Zealand, ENZL, as is seen in their ongoing Yahoo Finance Chart.

Nevertheless World Socks, VT, traded strongly higher, +1.5%, on the sell of the Japanese Yen, FXY. The chart of World Stocks, VT, relative to Credit, AGG, VT:AGG, shows a surge in wealth, that is World Stock, VT, over Credit, AGG.  The surge in World Stocks, VT, is partly short sell covering in a bear market, and partly a carry trade operating in the US Dollar Yen cross. The bear market in stocks originated December 2, 2013, coming from investor awareness that the world central banks monetary policies, such as QE, despite the tapering announced on December 16, 2013, have crossed the rubicon of sound monetary policy, and have made “money good” investments bad, beginning when the Benchmark Interest Rate rose from 2.48%.

It’s very much an oxymoron, that a number of stock sectors, as well as the US Stocks, VTI,  can rally strongly higher on collapsing fiat money, but these have been the benefit of a rising USDJPY, which is producing peak wealth in a broad spectrum of US stocks, most notably US Infrastructure, PKB.

Abundant margin credit; and a strong sell of the Japanese Yen, FXY, leveraged World Stocks, VT,  specifically US Stocks, VTI, higher. Said another way, investment seigniorage, did not come from the US Federal Reserve Announcement of Tapering, but from the ongoing operation of schemes of margin credit, debt trade investing, and currency carry trade investing, all of which are operating at their peak capability, and will be exhausting soon, most likely substantially before the Quarter 4, 2013.

Global Financials, IXG, traded strongly higher, +1.6%, with Japan’s Banks, SMFG 4.0% and MTU 3.6%, India Earnings, EPI 2.5%, Chinese Financials, CHIX, 2.1%, European Financials, EUFN 1.5%, Investment Bankers, KCE, 2.8%,, rose to a new high, Too Big To Fail Banks, RWW, 2.1%, a new high, Stockbrokers, IAI 1.9%, a new high, and Regional Banks, KRE 1.5%, a new high. Regional Banks, HBAN, FIBK, SIVB, OZRK, SNV, and UCBI, have been stellar Small Cap Pure Value, RZV, leaders, these having benefited from Ben Bernanke’s Put in a spectacular ongoing riskless trade, that is a Risk On Trade, seen in the Risk Off ETN, OFF, falling in value. Asset Managers seen in this Finviz Screener, traded higher. These rose to new highs on the sell of the Major World Currencies, such as Japanese Yen, FXY, and Emerging Market Currencies, such as the Brazilian Real, BZF.

The ongoing Yahoo Finance chart of Global Growth Excluding the US, DNL, together with Germany, EWG, The US, VTI, China, YAO, Switzerland,  EWL, Netherlands, EWN, South Korea, EWY, and and Sweden, EWD, communicates two currency carry trades at work in the financial marketplace, at a time that liberalism is pivoting into authoritarianism, these two being, a carry trade in German Stocks, EWG, and a carry trade in US Stocks, VTI, both based on a short of the Japanese Yen, FXY.

Nation Investment, VT, traded higher, +1.4%, with most of that coming in US Stocks, VTI, +1.6%, which rose to a new rally high.

Sectors rising higher on the sell of the Japanese Yen, FXY, included the health care stocks, such as  Biotechnology, IBB, and Pharmaceuticals, PJP, and consumer stocks such as Media, PBS, Retail, XRT, Nasdaq Internet, PNQI, Food and Beverage, PBJ, Consumer Discretionary, IYC, Internet Retail, FDN, Smallcap Consumer Staples, PSCC, and Resorts and Casinos, BJK, the latter to a new high.

Global Consumer Discretionary, RXI, and Credit Providers Mastercard, MA, and Visa, V, traded strongly higher.

Other US Sectors trading higher on the sell of the Japanese Yen, FXY, included US Infrastructure, PKB, such as MHK, GPK, PKG, TEX, DXPE, FLS, AME, SNA, CSL, and IPOs, FPX, as well as  Aerospace and Defense Stocks, PPA, such as those seen in this Finviz Screener.

International Industrial Companies, IPN, seen in this Finviz Screener, traded higher.

Global Industrial Producers, FXR, seen in this Finviz Screener traded higher.

Leveraged Buyouts, PSP, traded to a new rally high.

Yield bearing sectors, Dividend Growth, VIG, traded strongly higher, +2.1%, led by Exxon Mobil, XOM, ABT, PFE, JNJ, QCOM, HPQ, TXN, HD, UTX, India Earnings, EPI 1.8%, US Real Estate, IYR, 1.7%, Global Utilities, DBU 1.5%, Residential REITS, REZ 1.4%, Global Telecom, IST 1.4%,  Global Real Estate DRW, 1.3%, and Electric Utilities, XLU 1.3%, trading higher.

Nation Investment, EFA, +0.7%. The Nikkei, NKY, 2.8%, rose near its previous high. Russia, RSX 2.5%, India, INP 2.0%, US Stocks, VTI, 1.6%, rose to a new rally high, Sweden, EWD, 2.3%, Germany, EWG, 1.2%, Eurozone, EZU, 1.2%, China, and YAO, 1.2%.  Yet, Australia,EWA, continued its trend, falling strongly lower.

Gold Miners, GDX -1.6%, with Gold, GLD, -0.9%; Silver Miners, SIL -1.2%, with Silver, SLV, -0.3%

The bond vigilantes continued calling the Interest Rate on The US Ten Year Note, ^TNX, higher, now  to 2.88%, and continued steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as is seen in the Steepner ETF, STPP, steepening, with the result that Aggregate Credit, AGG, traded -0.05%, lower, and Mortgage Backed Bonds, MBB, -0.29%, lower.  Junk Bonds, JNK, traded unchanged.  Currencies trading lower included the Japanese Yen, FXY, -1.4%, and the Brazilian Real, BZF, -1.1%

The US Dollar, $USD, traded unchanged at 80.25. Major World Currencies, such as the Japanese Yen, FXY, traded lower; it closed strongly lower 93.89. And Emerging Market Currencies, such as the Brazilian Real, BZF, traded lower.  The Euro Yen Currency Carry Trade, EUR/JPY, closed slightly lower at 142.01.  Spot Gold, $GOLD, traded lower to $1,215, on the rise of US Stocks, VTI. These are polar opposites; so with US Stocks, VTI, in particular, the Investment Bankers, KCE, trading higher,

The Gold ETF, GLD, traded lower.

The seven bearish sectors, that is the “seven bears” traded higher.

1) Small Cap Pure Growth, RZG, traded higher.

2) Small Cap Pure Value, RZV, traded higher.

3) Semiconductor Equipment Manufacturers and PCB Manufacturers trading higher included AMAT, KLAC, LRCX,  ASML, and ADI.

4) Health Care Providers, IHF, seen in this Finviz Screener, traded higher.

5) Medical Devices, IHI, seen in this Finviz Screener, traded higher.

6) Legacy Manufacturing Industries, Steel, SLX, Design Build and Construct, FLM, and Timber Producers, WOOD, Industrial Miners, PICK, Automobiles, CARZ, Industrial Textiles, MHK and Networking, IGN, traded higher, recovering from a prior strong sell off.

7) The Defensive Sector, Global Consumer Staples, KXI, had been selling off quite strongly since the bond vigilantes called the Benchmark Interest Rate, ^TNX, higher on October 23, 2013, but today it rallied strongly; but moved less vigorously than its peer Global Consumer Discretionary, RXI.

Global Consumer Staples, KXI, that had been selling off on debt deflation, include British American Tobacco, BTI, Brazil Foods, BRFS, Smuckers, SJM, Kimberly Clark, KMB, Conagra Foods, CAG, Ingredion, INGR. International Fragrances, IFF, and Ecolab, ECL.

In summary, a sell of the Japanese Yen, FXY, to close lower at 93.89, leveraged US Stocks, VTI,  higher; despite, or perhaps better said because, the monetary policies of the US Central Bank have make “money good” investments bad, at least for those stocks outside of the US bad.

At the end of the day, when all was said and done, fiat wealth investments in World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Dividend Growth, VIG, were not worth more in the sense they had greater profitability or greater economic capability; rather they were worth more because currency carry traders sold the Japanese Yen, FXY, short in currency carry trade investing.

The sell of the Japanese Yen, FXY, is an unmitigated disaster for Japan, EWJ, as Agricultural Commodities, JJA, and Oil, USO, are now more expensive. Of note, Wheat, WEAT, traded strongly lower, but for the Japanese, they still will have to pay more for it as their currency has been totally debased by the currency traders; Japanese household will be seeing inflationary prices very soon given the Wednesday December 18, 2013, sell of the Japanese Yen, FXY.

The bulls have not taken charge of the stock market. The rally in the stocks following the US Federal Reserve Announcement of Tapering, was a US Stocks, VTI, Japanese Yen, FXY, currency carry trade rally, that produced a short selling opportunity, in an ongoing bear market that commenced on October 23, 2013, when bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, that is the “Means of Economic Destructionism”, higher from 2.48%.  The rally in stocks was to have been sold, as in a bull market one buys into dips, but in a bear market, one sells into pips.

On Thursday, December 19, 2013, Gold, GLD, traded sharply lower, turning Gold Miners, GDX, lower; and Silver, SLV, collapsed, turning Silver Miners, SIL, lower.

Global Financials, IXG, traded unchanged.

World Stocks, VT, traded unchanged. Sectors trading higher included Solar Energy, TAN, Steel Manufacturers, SLX, and Global Industrial Producers, IPN, led by Alcoa Aluminum, AA, seen in this Finviz Screener. Sectors trading lower included Uranium Mining, URA, CARZ, led lower by Ford, F, and General Motors, GM, and Casinos and Resorts, BJK.

Nation Investment, EFA, traded unchanged. Nations trading higher included Australia, EWA, KROO.

Nations trading lower included Turkey, TUR, India, INP, SCIN, China,YAO, ECNS,  South Korea, EWY, Thailand, THD, The Philippines, EPHE, Singapore, EWS, EWSS, Indonesia, IDX, IDXJ, Brazil, EWZ, EWZS, Russia, RSX, Ireland, EIRL Greece, GREK, and the Nikkei, NKY.

Yield bearing sectors trading lower included India Earnings, EPI, Brazil Financials, BRAF, Residential REITS, REZ, Global Utilities, DBU, Real Estate, IYR, and Electric Utilities, XLU.

Perhaps you think like Fed Worshiper Ambrose Evans Pritchard who writes So let us waive a fond farewell to the printing press. It has served us well.

The Fed’s $3.2 trillion bond spree since 2009, has fueled fiat wealth, that is fiat asset bubbles galore, with these screaming Hot ETFs, FPX, FDN, RZV, RZG, PNQI, PJP, CSD, BJK, SOCL, PSCD, presented in combined ongoing Yahoo Finance chart, and seen in their Finviz Screener providing ample example. Liberalism was the age of investment choice, and greatly rewarded those who perceived it as such and “went all in” with the riskiest of investments.

Of note, the QEs, and thus the US Fed’s Balance Sheet, is based, first on the Distressed Investments, taken in under QE 1, like those traded in Fidelity’s FAGIX Mutual Fund, and then contain the Excess Reserves, containing US Treasury Bonds, TLT, and then the Debt Purchased, more TLT, and then Mortgage Backed Bonds, MBB, purchased under the most recent QE; these so called assets, consist of debt purchased, and are set to collapse, as is communicated by the ongoing combined Yahoo Finance Chart of FAGIX, and TLT, and MBB. The Fed’s balance sheet is comprised mostly of debt!!!

On October 23, 2013, 2013, the bond vigilantes in calling the Benchmark Rate, ^TNX, higher, terminated liberalism. Now, under authoritarianism the banks, very soon all the banks will be integrated into the government and become known as the government banks or govbanks for short; the excess reserves will not be released to spur inflation; and inasmuch as the Benchmark Rate, ^TNX, is rising from 2.88%, the Fed’s Balance Sheet will be losing value at an ever increasing rate.

Or, perhaps you share Pope Francis disgust of the wealth bubble, and the debt bubble, in his latest encyclical.

Please consider that God from eternity past destined that liberalism, as it is known today, not in the classical sense of the word, to be the age of investment choice, and brought forth the Creature from Jekyll Island, to produce wealth for the investor.  Now, by God’s design, through the death of fiat money, that is Aggregate Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW, He is bringing forth the Beast of Revelation 13:1-4, in the age of nannycrat diktat, together with diktat money, to produce debt servitude for the debt serf.

On Thursday, December 19, 2013, the day after the US Federal Reserve Announcement of Tapering, all forms of fiat money finally died, as the Swiss Franc, FXF, and the Indian Rupe, ICN, traded lower from their rally highs, and Aggregate Credit, AGG, traded sharply lower, as the bond vigilantes continued calling the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.93%, and continued in steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as is seen in the Steepner ETF, STPP, steepening, fully terminating the sovereignty of the banker regime of democratic nation state governments, and its policy of investment choice, based upon schemes of credit and carry trade investing. The Fed, and all of its cousins, every last one of them is dead; terminated and gone forever.

The failure of sovereignty of the banker regime of democratic nation state governments, coming on the bond vigilantes calling the Benchmark Interest Rate, ^TNX, the “Means of Economic Dstructionism”, higher from 2.88%, is seen in the chart of World Treasury Debt, BWX, trading sharply lower in value immediately after the US Federal Reserve Announcement of Tapering

Now with the sovereignty of the banker democratic nation state regime having failed, and with the product of the banker regime, that being fiat money, consisting of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, terminated, the seigniorage of the Milton Friedman Free to Choose Floating Currency Regime is bound to fail, resulting in Global Financial, IXG, Nation Investment, EFA, and World Stocks, VT, trading lower from their October 23, 2013, through November 29, 2013, peaks.

Liberalism’s final stock risk-on stock market rally beginning in December 2010, after the Bernanke Put at Jackson Hole, and then intensified in July 2013, as is seen in Bespoke Investment Group chart, with sell of the US Dollar, $USD, UUP.

Doug Noland remarks Global markets convulsed back in May/June as the Fed moved to prepare the world for less QE and Chinese officials finally decided to more forcefully clampdown on China’s runaway Credit and asset Bubbles. Respective domestic fragilities coupled with global fragilities saw both the Fed and Chinese in quick “tightening” retreat.

Respective domestic fragilities coupled with global fragilities saw both the Fed and Chinese in quick “tightening” retreat. And in both cases Bubble excesses bounced right back stronger and more unwieldy than ever.

The crack up boom culminated with US Stocks, VTI, rising strongly on a Dollar Yen currency carry trade and Junk Bond, JNK, debt trade, beginning on October 23, as the bond vigilantes continued calling the Interest Rate, ^TNX, the “Means of Economic Destructionism”, higher from 2.48%, and the currency trader continued selling the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, with the result that other major investments such as the Eurozone, the Nikkei, Asia Excluding Japan, and the Emerging Markets weakened or failed, as is seen in the ongoing Yahoo Finance Chart of VT, VTI, EZU, NKY, EPP, and EEM.

The tremendous leverage of Stocks, VT, over Aggregate Credit, AGG, seen in the ratio of the two, VT:AGG, cannot be sustained; communicating a soon coming trade lower in World Stocks, VT, on the exhaustion of the world central banks’ monetary authority.

The US Dollar, $USD, UUP, traded slightly higher to close at 80.75. Spot Gold, $GOLD, traded lower to $1185, on the sustained rise of US Stocks, VTI. These are polar opposites; so with US Stocks, VTI, in particular, the Investment Bankers, KCE, trading at rally highs, The Gold ETF, GLD, traded lower to 114.82.

The two great levers of liberalism’s wealth are finally trading lower in value evidencing the exhaustion of the world central banks monetary authority. Junk Bonds, JNK, traded lower to close at 40.58; and the EUR/JPY traded lower to close at 142.41, communicating that the bond vigilantes have fully PIVOTED the world out of the paradigm and age of liberalism into that of authoritarianism.

The failure of the Milton Friedman Free To Choose floating currency regime, seen in the US Dollar, $USD, UUP, rising in October 23, 2013, and the peaking out of Global Financials, IXG, Nation Investment, EFA, and World Stocks, VT, communicates that liberalism’s creditism, corporatism, and globalism, are giving way to authoritarianism’s regionalism.

Now with the “Means of Economic Destructionism”, that is the Benchmark Interest Rate, ^TNX, rising from 2.88%, the dynamo of regionalism, will awesomely start to empower the beast regime, presented in Revelation 13;1-4, with its policies of regional governance diktat and schemes of totalitarian collectivism, to fully enforce debt servitude in the paradigm and age of authoritarianism.

In the age of authoritarianism, diktat money replaces liberalism’s fiat money; and fiat wealth, that is World Stocks, VT, and metrics of investment wealth such as M2 Money will be falling lower in value.

Under authoritarianism, the only form of sovereign wealth and sustainable wealth is diktat and the physical possession of gold bullion and silver bullion. Currently investors are long World Stocks, VT, and short the Gold, GLD, ETF, as is seen in the chart of  VT:GLD, which is crushing gold. One should start to dollar cost average an investment in gold, and take possession of it.

Bloomberg reports China Rate Swap surges to record as Reverse Repos kept on hold. China’s interest-rate swaps jumped the most since July, touching a record, as the central bank refrained from injecting cash into the financial system at a time when demand for funds is climbing. One-year contracts that exchange fixed payments for the floating seven-day repurchase rate increased 15 basis points to 5.03 percent, according to data compiled by Bloomberg. The swap climbed as high as 5.07 percent today, the highest in data going back to April 2006, and has averaged 3.76 percent this year.

Bloomberg reports China’s Stocks drop for eighth day on concern over funding costs. Chinese stocks fell for an eight day, extending the benchmark index’s longest losing streak since June, on concern higher funding costs will hurt economic growth. Financial companies slid the most among industry groups. China Minsheng Banking Corp. and Huaxia Bank Co. slumped more than 1 percent, while Gemdale Corp. led declines for developers with a 1.4 percent retreat. Jiangsu Hengrui Medicine Co. dragged down health-care companies with a 2.3 percent retreat. Phone stocks gained as ZTE Corp. climbed 1 percent. The Shanghai Composite Index (SHCOMP) slipped 0.1 percent to 2,146.39 at the 11:30 a.m. break, after changing directions at least seven times

Bloomberg reports Baucus said to be Obama pick as US Ambassador to China. President Barack Obama will appoint Senate Finance Committee Chairman Max Baucus as ambassador to China, two people with knowledge of the matter said today.

Bloomberg reports North Korea purge raises Risk of Kim Jong Uncle’s show of force. North Korea’s execution of Kim Jong Un’s uncle and de facto deputy raises the risk the leader may take military action against the South to demonstrate his authority after the purge. South Korea has heightened its combat readiness since Kim’s uncle Jang Song Thaek was executed last week following his conviction for treason, the highest-ranking official to be purged since Kim took over upon the death of his father in December 2011. President Park Geun Hye warned Dec. 16 of possible “reckless provocations” from the North.

Bloomberg reports Spain’s Regions Can’t Endure More Budget Cuts, Andalusia Says. Spanish regions can’t endure more spending cuts, Andalusia’s budget chief said, as she defended levying a tax on bank deposits. Maria Jesus Montero Cuadrado, budget chief of Spain’s most populous region, is resisting central government demands for more cuts through 2015. Undermining health or education is a “red line” for Andalusia, which has a 36 percent jobless rate, she said in an interview in Seville yesterday.

WSJ reports A new threat to UPS and FedEx. Networks of ‘Super Regional’ Shippers handle more packages for E-Retailers

WSJ reports State exchange chiefs skip town, while Obama hires a hitman. State exchange chiefs skip town, while Obama hires a hitman. President Obama has responded to the ObamaCare debacle by bringing in Beltway liberal mastermind John Podesta as a senior West Wing hand, and he promptly announced his arrival by likening House Republicans to “a cult worthy of Jonestown”.

On Friday, December 20, 2013, Debt deflation struck the World Small Cap Stocks, as Greece, GREK, Indonesian Small Caps, IDXJ, Turkey, TUR, Brazil Small Caps, EWZS, and the Philippines, EPHE, Indonesia, IDX, Thailand, THD, Argentina, ARGT, Malaysia, EWM, and China Small Caps, ECNS, led World Small Caps, VSS, lower

Doug Noland reports Turkish (lira) 10-year sovereign bond yields surged 57 bps this week to 9.92%, the high since the summer crisis period. Brazil’s (real) 10-year yields jumped 41 bps to 13.20%. Reminiscent of May/June, market yields were generally on the rise around the globe.

And Mr. Noland relates Key EM Currencies, CEW, were under heavy selling pressure. The Turkish lira was hit for 2.5% this week, the Brazilian real 2.4%, the Argentine peso 2.1% and the Mexican peso 0.7%. Asian currencies were also under notable pressure. The Thai baht declined 1.7%, the Malaysian ringgit 1.6%, the Taiwanese dollar 1.1%, the Indonesia rupiah 0.9%, the Singapore dollar 0.9%, the Japanese yen 0.9%, the South Korean won 0.8% and the Philippine peso 0.8%.

In yield bearing sectors, Leveraged Buyouts, PSP, which yields 9.6%, fell 4.9% lower, and Shipping SEA, which pays 1.6% higher, rose 1.0%,

World Stocks, VT, traded unchanged; with Networking, IGN, Software, IGV, Biotechnology, IBB, Small Cap Industrials, Small Cap Pure Value, RZV, Small Cap Pure Growth, RZG, Transportation, XTN, Global Producers, FXR, IPOs, FPX, Aerospace, PPA, Pharmaceuticals, PJP,  Media, PSP, Global Consumer Discretionary, RXI, trading higher.  And with Global Industrials, IPN, Resorts, BJK, Solar, TAN, and China Industrials, CHII, trading lower as   William Selway and Brian Chappatta of Bloomberg report A Chinese manufacturing index unexpectedly fell to a three-month low as output gains eased and employment weakened, suggesting the world’s second-largest economy is vulnerable to a slowdown. The preliminary reading of 50.5 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compares with a final figure of 50.8 in November and the 50.9 median estimate .

Global Financials, IXG, traded 0.5%, with European financials, EUFN, Regional Banks, KRE, and Stockbrokers, IAI, trading higher and National Bank of Greece, NBG, trading strongly loer.  Brazil Financials, BRAF, and Chinese Financials, CHIX, traded lower.

Nation Investment, EFA, traded 0.6% higher; as the Eurozone, EZU, the Nikkei, NKY, Asia Excluding Japan, EPP, and the US, VTI, traded higher. India, INP, traded strongly higher. Greece, GREK, Brazil, EWZ, Turkey, TUR, the Philippines, Indonesia, IDX, Thailand, Malaysia, EWM, and Ching YAO, traded lower.

Energy Production, XOP, and Small Cap Energy, PSCE, traded higher.

The Apostle John wrote from prison, while living in exile on The Isle of Patmos about 90 AD, the contents of a dream given to him by angels.

The Revelation Of Jesus Christ, which foretells those things which must shortly come to pass, these being presented in Revelation 1:1, means a series of events, that once they begin, as they did on October 23, 2013, when Jesus Christ, acting in dispensation, that is in the administration of all things economic, PIVOTED the world from the paradigm and age of liberalism into that of authoritarianism, by releasing the First Horseman of The Apocalypse, presented in Revelation 6:1-2.

The Rider on the White Horse, who has a bow, yet no arrows, symbolizing his economic sovereignty over the world, is effecting a bloodless global coup d’état, and is transferring sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, by calling the Interest Rate on the US Ten Year Note, ^TNX, the “Means of Economic Destructionism”, higher from 2.48%, and by steepening the 10 30 US Sovereign Debt Yield Curve, TNX:$TYX, seen in the Steepner ETF, STPP, steepening, thereby destroying fiat money.

An Elliott Wave 3 of 3 Up that commenced with the bond vigilantes calling the Benchmark Interest Rate, $TNX, higher from 2.48%, on October 23, 2013. The bond vigilantes are in full control of the “Means of Economic Destructionism”, and it is not oversold, and the sell of Credit, AGG, and the 10 Year US Notes, TLT, is not overdone.  The Elliott Wave 3 of 3 Waves are the most sweeping of all waves, they create the bulk of wealth on the way up, and destroy most of the wealth on the way down. This wave will make the bankers holding Interest Rate Swaps, that came as part of liberalism’s POMO, awesomely wealthy.

On Friday, December, 20, 2013, the bond vigilantes took profit on the rise in the Benchmark Interest Rate, ^TNX, the “Means of Economic Destructionism”, letting it fall to 2.88%, and the US Ten Year Notes, TLT, rose; their chart suggests that they will do so, but not for long.

Having the “Means of Economic Destructionism”, and given that the world has pivoted from liberalism’s creditism, corporatism and globalism, into authoritarianism’s regionalism, the bond vigilantes and investors, should be selling into pips, that is rises, in the US Ten Year Notes, TLT, as in a bear market one sells into pips, just like in a bull market one buys into dips.

During the former age, that is the age of investment choice, the bankers and the investor had the  “Means of Economic Inflationism”, and participated in riskless risk-on investing, seen in the Risk On ETN, ONN, rising in value. Now, inasmuch as the bond vigilantes, have taken all into new age of debt servitude, one should be short selling, as the Risk OFF ETN, OFF, will be rising in value. One can follow credit ETFs, by using this Finviz Screener.

Bloomberg reports Gold climbs from lowest close since 2010 as Goldman sees losses

4)  … Summary of investment activity for the week ending December 20, 2013, reflects the dynamo of regionalism is active in destructionism, as the Rider On The White Horse, who has the bow of economic sovereignty, carrying the Bow of Economic Sovereignty, seen in Revelation 6:1-2,  has terminated nation state democracies and the banker regime of floating currencies. The Fed is dead, Jesus Christ in releasing the First Horseman of the Apocalypse, has slain the Creature from Jekyll Island, and is bringing forth a much more terrible monster, the beast of regional governance and totalitarian collectivism, seen in Revelation 13:1-4

Liberalism was the age of creditism, corporatism and globalism, through schemes of debt trade investing and currency carry trade investing, ie the EURJPY and the USDJPY, fiat wealth swelled, in an Elliott Wave 2 High, and is now ready to enter an Elliott Wave 3 Down on the exhaustion of the world central banks monetary authority, as its monetary policies have crossed the rubicon of sound monetary policy and have made money good investments bad; such include the Emerging Markets, EE, the World Small Cap Stocks, VSS, and Yield Bearing Investments, such as Leveraged Buyouts, PSP. Zero Hedge posts BofAML closes USDJPY, and warns bulls beware.  And Reuters reports Dollar falls from five-year high vs Yen

Liberalism’s scheme of debt trade investing is seen in the Andrew Bolger FT report Investors’ hunger for yield in a low interest rate environment has led to the best year for global high-yield corporate debt on record, according to Thomson Reuters. It has reached $473bn this year, already up 18% over last year’s total. For the fourth quarter of 2013, global corporate debt totalled $111bn, a 1% decrease from the third quarter.

World Stocks, VT 1.7%, and World Small Cap Stocks, VSS, -1.2%

Networking, IGN 4.4%

Media, PBS 4.3

Internet Retailing, FDN 4.2

Nasdaq Internet, PNQI 4.0

Biotechnology, IBB 3.9

Small Cap Industrial, PSCI 3.8

Small Cap Consumer Discretionary, PSCD 3.2

Pharmaceuticals, PJP 3.7

Software, IGV 3.6

Shipping, SEA 3.5

Aerospace and Defense, PPA 3.4

Semiconductors, SOXX 3.3

Global Industrial Producers, FXR 3.2

Paper Producers, WOOD 3.1

Small Cap Pure Value, RZV 2.8

Small Cap Pure Growth, RZG 2.7

IPOs, FPX 2.6

Global Financials, IXG 2.5%

Investment Bankers, KCE 4.1%

European Financials, EUFN 4.0

Stockbrokers, IAI 3.0

Too Big To Fail Banks, RWW 2.9

Regional Banks, KRE 2.6

India Earning, EPI 2.6

China Financials, CHIX -2.2

National Bank of Greece, NBG -4.6

Simon Rabinovitch of FT reports: “An emergency cash injection by the Chinese central bank failed to calm the country’s lenders as money market rates climbed to dangerously high levels. Analysts cited a variety of technical factors for the tightness in the Chinese financial system, but the sudden run-up in rates was an uncomfortable echo of a cash crunch that rattled global markets earlier this year. Investors were alarmed at the potential for a repeat of that squeeze. The Shanghai Composite, the country’s main equities index, fell 2%. The nine-day decline for Chinese stocks is their worst losing streak in nearly two decades. Concerns focused on the rates at which Chinese banks lend to each other. The seven-day bond repurchase rate, a key gauge of short-term liquidity, was emblematic of their reluctance to part with cash. It averaged 7.6% in morning trading on Friday, its highest since the crunch that hit China in late June. That was up 100 bps from Thursday and far above the 4.3% level at which it traded just a week ago. The sharp increase occurred despite the central bank’s highly unusual decision to conduct a ‘short-term liquidity operation’. CBN reported that the short-term injection was worth Rmb200bn ($33bn), a large amount, Lu Ting, an economist with Bank of America Merrill Lynch, said China’s financial system was entering a new era and policy makers were struggling to adapt

Nation Investment EFA 2.5%

US Stocks, VTI 2.0%

Eurozone, EZU 3.2

Asia Excluding Japan, EPP 2.0

Nikkei, NKY 2.1

Brazil, EWZ —

Russia, RSX 2.6

India, INP 3.1

China, YAO -1.9

Spain, EWP 4.0%

Germany, EWG 3.4

German Small Caps, GERJ, 3.3

Finland, EFNL 3.6

Netherlands, EWN 3.5

Denmark EDEN 2.9

Ireland, EIRL 2.1

Greece, GREK -2.6

Sweden, EWD 4.0%

Switzerland, EWL 2.6

George Krum posts The State of the Trend providing the chart of $SPX at $1818, up 2.4%.

Dividend Growth VIG 2.0% with Global Telecom, IST, 1.5%, such as Sprint, S, 16.7%

Leveraged Buyouts PSP -3.6%

Michael Noonan posts in Safehaven.com Gold – A supressed market remains suppressed, but for how long? And provides a chart of the US Dollar, $USD, at $80.75. Gold,  GLD -2.8%  and Silver, SLV -1.7%.  Spot Gold, $GOLD, closed the week at $1,200; the Gold ETF, at 116.

An inquiring mind asks, were you named the investor of the year? Well, Time Magazine has named Carl Icahn as investor of the year. Were you smart enough to invest with Icahn Enterprises LP, IEP?

I’m not an apologist, rather I am a minister of God, and in ministering to you, I must relate the truth that God designed liberalism to be the age of investment choice, and one of the best investments was in vice stocks, as is seen in the ongoing Yahoo Finance Chart of Fidelity Mutual Funds, VICEX, and its components MGM, WYNN, LVS, BA, MO, LO, RAI, and DEO. Furthermore, does it offend you that Jesus Christ, the Great God of the Universe, would take filthy lucre and make it king of liberalism’s paradigm and age; and use it to build the US Dollar Hegemonic Empire to be the defining global kick ass, might makes right hegemon of all time, as Chris Rossini writes in Economic Policy Journal Bully Boys Teddy, Willy, & Barry trample liberty and strengthen the executive at every opportunity?

I am not offended, as Jesus in full glory of Ephesians 1:10, affected the Economy of God throughout the world, to have produced the most moral hazard based prosperity and interventionist nation state experience possible, on November, 29, 2013, and running through December 20, 2013.

Such an achievement was the Lord God acting in dispensation, that is in the administrative oversight of all things economic and political, to mature, complete, fulfill and perfect, a life experience in investment choice, coming from the inflationism of the dynamos of creditism, corporatism, and globalism, all based upon schemes of a Federal Reserve based debt trade and Global Banking currency carry trade investing.  This dispensation, being the very heart and mind experience of the Apostle Paul, as he wrote to the Ephesians in Ephesians 1:10.  I ask, just who were the saints at Ephesus?  They were the elect of God, those chosen from time past to hear of their appointment by God, in grace and truth, so as to be set free from the slavery of sin, that is doubt, and know the freedom of life in Christ.

This grand experience began to come to an when Jesus Christ, opened the First Seal of the Scroll of End Time Events on October 23, 2013, and released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his economic sovereignty over the world.

He effected a bloodless global coup d’état, and PIVOTED the world from the age and paradigm of liberalism to that of authoritarianism, and transferred sovereignty from traditional democracy strongholds, to nannycrats of all types to effect totalitarian collectivism, as evidenced by the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX,  the “Means of Economic Destructionism”, higher from 2.48%, and the currency traders selling the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, putting to fiat money to death, thus introducing debt deflation, monetary deflation, credit exhaustion, and recession worldwide.

Jesus Christ finally put the monster in charge of liberalism, The Creature from Jekyll Island, to death between November 29, 2013, and December 20, 2013, when fiat wealth traded up to its rally high, and then traded lower in December, as is seen in the ongoing Yahoo Finance Chart of VT, IXG, EFA, VTI, EZU, EPP, EEM, VICEX, and FAGIX.

Thus, Jesus Christ is terminating liberalism as both an age and a paradigm, and is confirming this  with its levers of investment liquidity, the debt trade, Junk Bonds, JNK, and the Euro Yen  EUR/JPY, and US Dolllar Yen USD/JPY, currency carry trades, all  toping out.  Soon  US Stocks, VTI trading lower, on an unwinding Ultra Long Euro,  EUR,  and Ultra Short Yen, YCS, trade; which will be seen in the combined ongoing Yahoo Finance chart of the three.

Rather than looking in the economic rear view mirror, and calling to End the Fed, one should be looking and searching bible commentary to come to understand the Beast Regime, Revelation 13:1-4, its Sovereign, Revelation 13:5-10, and its Seignior, Revelation 13:11-18, that is the top dog monetary and economic lord, who in minting diktat money takes a cut, and to understand that the bond vigilantes operate the “Means of Economic Destructionism”, that is the Benchmark Interest Rate, $TNX, and to understand that nannycrats are rising to power, working in the dynamo of regionalism, which is powering up diktat policies of regional governance, and schemes of totalitarian collectivism.

Mike Mish Shedlock reports Average 30-Year mortgage rate hits 4.47%: Affordability check

As soon as the US Federal Reserve Announcement of Tapering was released, the bond vigilantes exerted control over the Benchmark Interest, ^TNX, and called the “Means of Economic Destructionism”, higher once again to 2.88%. Disinflation, that is falling demand, falling household formation, and falling consumer goods prices, are defining characteristics of economic recession; that will be further enforced by ongoing austerity of the new monster of regional governance and its totalitarian collectivist nannycrats, that is replacing the Creature from Jekyll Island.

Jesus Christ is acting in dispensation, is maturing, perfecting, and completing authoritarianism, through releasing all of the Four Horsemen of the Apocalypse to accomplish a deflationary bust, seen in Revelation 6:1-8, and bringing it to its zenith through debt servitude, where there will be an ever increasing crushing economic recession and austerity, as one experiences economic life in the dynamo of regionalism, as is foretold in Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:7.

Buying homes on credit was an economic activity where one operated in the dynamo of liberalism’s creditism and corporatism.

Such will now be greatly curtailed, as Jesus Christ is acting in dispensation, maturing, perfecting, and completing authoritarianism, through releasing all of the Four Horsemen of the Apocalypse, to accomplish a deflationary bust, seen in Revelation 6:1-8, and is bringing it to its zenith, through debt servitude, where there will be ever increasing crushing economic recession and austerity, as one experiences economic life in the dynamo of regionalism, as is foretold in Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:7.

The bond vigilantes in calling the Benchmark Interest Rate, ^TNX, and the currency traders in selling the World’s Major Currencies, DBV, and the Emerging Market Currencies, began destroying fiat money on October 23, 2013, and then fiat wealth on December 20, 2013. Through their combined actions they are increasing the economic costs of household formation and maintaining a home.

Dr. Ed Yardeni asks Another soft patch ahead? The rebound in the chart of the Citigroup Economic Surprise Index over the past 10 days might not be sustainable into the start of next year. I’m not turning pessimistic about the outlook for 2014. I am just raising a warning flag given the remarkable increase in inventories recently and weakness in pricing.

Open Europe posts EU member states agree to “deepen defence cooperation” Irish Times Telegraph Irish Times: Ashton European Voice European Voice 2 Euractiv BBC Welt Welt 2 Reuters FAZ Le Monde Times Irish Independent European Council conclusions: Security and Defence Policy

EU member states agreed yesterday to make a “strong commitment to the further development of a credible and effective CSDP [Common Security and Defence Policy], in accordance with the Lisbon Treaty.” Measures include more flexible and deployable EU Battle groups, changes to how EU missions are financed as well as co-operation on drone, satellite, refuelling aircraft and cyber-security development “supported by the European Defence Agency”. Referring to reports that France had hoped to allow for EU funding of its current mission in the Central African Republic, Le Monde cites President Hollande as saying, “We got what we could get”, while adding that he hopes to transform it into an EU mission but that only Poland has so far expressed willingness to get involved. David Cameron said, “It makes sense for nation states to cooperate over matters of defence to keep us safer”, before stating the EU summit conclusions did not refer to an EU army.

Dr. Housing Bubble writes the thought provoking article Is California gentrifying the middle class out of the state?

Intellilhub reports Now that Obama is allowing chicken from China

Dr Sircus writes of the new normal of Ice age winter; and Elaine Meinel Supkis writes frequently on the subject of the new normal of whether phenomena, posts Global warming fanatics ban all contrary debate while utterly ignoring severe cold covering North America and writes Snow In Egypt: Global cooling more and more obvious, communicating the end of global warming.

WeLiveSecurity communicates of the coming cashless society Biometric ‘Smart ID’ card could offer the ultimate in portable security.  A new ‘Smart ID’ card, BluStor, aims to “eliminate hacking and identity theft”, using a combination of voiceprints, fingerprints and iris readings and connecting to mobile devices via Bluetooth, so an app can confirm a user’s ID instantly. The card stores biometric details for users, and connects to BluStor’s Secure Mobile Briefcase app, which checks fingerprints, iris scans or voiceprints against the ones stored on the card, according to a report by Biometric Update.

For me, there are two things worthy to invest in. The first is an ism.  In EconomicReview Journal, I blog on the dynamo of regionalism, as I comment on Liberalism and Authoritarianism, in light of dispensationalism.  And the second is keeping Christ’s Word and not denying His Presence And Authority.

An ism is defined as a process that produces a state-of-being from ideas; one adopts an ideology, and then embraces an ism, and the two produce the individual’s state-of-being, where one has life experience.

There be many isms; every person, has an ism: each individual has economic action out of some movement.

Liberalism’s dynamos of creditism, corporatism, and globalism established economic systems such as India’s terrifically corrupt capitalism, France’s municipal finance socialism, Greece’s pork and patronage socialism, Australia’s crony capitalism. People living in democratic nation states had life experience out of liberalism’s isms. Some strive to be libertarians, and read Hayek, Mises, and Rothbard, string to have experience out of libertarianism. People had economic action out of the movement of bankers and nation state leaders operating in policies of investment choice and schemes of debt trade investing and currency carry trade investing.

Mike Head of WSWS writes Australia’s Auto closures pose need for a global workers’ strategy. The ending of production in an entire country is a concentrated expression of the ongoing, ruthless restructuring of the global auto industry; and calls for commitment to a life of Trotsky socialism, specifically a new international socialist strategy.

Authoritarianism’s singular dynamo of regionalism produces regional governance and totalitarian collectivism; increasingly people will be living in regions of economic governance, and having life out of totalitarian collectivism.  Increasingly people will have economic action out of the movement of regional nannycrats operating in policies of diktat and schemes of debt servitude.

Libertarian Mike Mish Shedlock writes Twenty-Three hurt in Spain protest against anti protest legislation; Peripheral Europe powder keg ready to explode.  As bad as all this is, the Euro made matters far worse. It can’t and won’t last.

Please consider that the Euro was conceived and designed in eternity past by God to be enduring. He produced the Euro out of the concepts of the Euro’s Father, Columbia University Professor Robert Mundell, who received the 1999 Nobel Prize in Economics for his 1961 paper “A Theory of Optimum Currency Areas”, as cited by EconoLib.org and other internet resources.

Through the singular dynamo of regionalism, a Euro Superstate, that is a One Euro Government, will emerge, as is foretold in bible prophecy of Revelation 13:1-4, Daniel 2:25-45, and Daniel 7:7.

For most people, the ism of regionalism, will produce debt servitude in the diktat of nannycrats as the way of life under authoritarianism. But as for me, I commit to dispensationalism, and keep Christ’s Word, and do not deny His Name, as I am committed to living in His presence and authority, and have movement out of His Spirit.

The Independent reports Unemployed told to leave Ireland in desperate move to slash welfare costs

Bill Bonner writes The Affordable Care Act is not designed to help anyone live longer or to lower the cost of healthcare. You may care about those things. But the people who run the government have their own motives and incentives. And they are not the same as yours. Instead, they aim to satisfy a more basic desire of government: to control people and transfer wealth.

Government has always desired to control people and transfer wealth; now the Government is getting supersized as part of God’s plan to have the Beast of Revelation 13:1-4 replace the Creature from Jekyll Island.

Each person, has time, talent, and treasure, that is personal property; and is invested in something. Each should have a definition of money; money is defined as the credit and flow of a household or stronghold.

The Apostle Paul reveals in Ephesians 1:10, Ephesians 3:2, Ephesians 3:9, and Colossians 1:2, that Jesus Christ is in the Sovereign Lord of the Universe, and that He is active in dispensation, that is He is exercising administrative management of all things, in each of mankind’s ages, to make them full and complete.

Dispensationalism comes from Strong’s Greek word oikonomia, #3622, dispensation, and means household dispensing, household stewardship, household management and economic oversight of property for the completion of every age, era, and epoch and time period. Dispensations are time of mercy and judgment.

Dispensationalism produces both the “saints” and the “aints”.

The Dispensation Economics Manifest, that is the dispensation ideology, is the foundation for a life experience of economic action in the person of Christ, having His virtue and ethics, and this establishes one as elect, living in spirituality and righteousness, separating from fiat who live in death, carnality and iniquity, and that Jesus Christ is introducing Fifteen New Things, which will result in the utter destruction of society as it currently exists.

Dispensationalism presents that Jesus Christ, opened the First Seal of the Scroll of End Time Events on October 23, 2013, and released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrow. This is the Bow of Economic Sovereignty, and symbolizes his economic sovereignty over the world, to effect a bloodless global coup d’état, and PIVOTED the world from the age and paradigm of liberalism to that of authoritarianism, and transferred sovereignty from traditional democracy strongholds to nannycrats of all types to effect totalitarian collectivism, as evidenced by the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, and the currency traders selling the Major World Currencies, DBV, and the Emerging Market Currencies, CEW, thus introducing debt deflation, monetary deflation, credit exhaustion, and recession worldwide.

Disinflation, that is falling demand, falling household formation, and falling consumer goods prices, are defining characteristics of economic recession; that will be further enforced by ongoing austerity of the new monster of regional governance and its totalitarian collectivist nannycrats, that is replacing the Creature from Jekyll Island.

Under liberalism, investors in democracies were the legislators of economic value and the legislators of economic life that shape one’s means and one’s ends.

Now, nannycrats working in public private partnerships like Obamacare are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

5) … A guide to experiencing the full salvation of God.

Jesus, being the Sovereign Lord God, has domain over all, and rules sovereignly in his realm where He provides the fullness of salvation. Wayne Brown presents Today’s Bible Verse Revelation 3:7-13

An inquiring mind asks, does Revelation 1:1 indicate a near to the original readers and hearers fulfillment; or does it indicate an ongoing fulfillment, or an end times fulfillment?

If one be of the preterist viewpoint, then one believes Seven reasons Revelation is about a past local judgement of Jerusalem.

Please open the door, and “enter the concept” that the book was written to believers of all ages, especially for the end time saints, to strengthen them so as not to fall prey to the best Beast Regime, Revelation 3:1-4, or the Beast Ruler, Revelation 3:5-10, or the Beast Monetary And Economic Lord, Revelation 1:11-18,  this is especially true if one believes that Jesus has an ongoing economy of God as presented in Ephesians 1:10.

Joseph Franks writes The Revelation of Jesus given to John is not written about seven church ages but about obedience, and communicates about rebellion or submission.

He concludes writing, Let us be less satisfied with external prosperity and reputation, and more concerned regarding internal vitality and character.  Many of these congregations looked good on the outside, especially the church from Laodicea.  But God sees the heart, and he is not as easily impressed.  It would be a shame to have sharp buildings, impressive ministries but no Holy Spirit.

Keep your eye on the prize.  Like Abraham, we are to long for the heavenly city.  Like John, let us clothe ourselves with the garment of God so we can enjoy the presence of God.  Some day soon we will be in the place of God, and there we will eat with God.  Paradise is not here yet, but it is coming.

While I live in Christ, I reside in Claritas Prizm 66, that is in Low Rise Living, in Bellingham Washington’s Urban Core in the Sea Breeze Apartments, where there are many psychopaths.

Most assuredly, the Nephilim have returned, for as Christ communicated, as it was in the days of Noah, so it shall be in the days of the coming of the Son of Man. These creatures, lacking remorse and seeking to be preeminent, have no enduring person; rather they are chameleons, who get life satisfaction from having social flare, and being a busy body in my affairs. They are like the Trilobite which impregnated the Engineer in the movie Prometheus.  The psychopaths, having no remorse, and no capability or desire to relate in ethics and virtue, are truly dangerous people; and these bears, lions, and leopards, roam about here in the inner city, getting a franchise of SSI/SSD, Food Stamps, Section 8 vouchers, and Utility Assistance.  From such I have a “no contact order from God”; I must withdraw, yes, I must turn away.

Paul Hilt asks Did the Giants of Genesis 6 come from the children of men and angels?  I relate that   archaeologists are continually finding their skulls, evidencing that they did indeed exist. And L.A. Marzulli, author, lecturer, and researcher talks about some of his research and books that deal with ancient history of the giants.

Most assuredly the Nephilim have returned and are in occupation; these include parabatai Eilidh and Sarah of cofounders of British Nephilim, who inform City of Bones is out on DVD in America. This twosome dabble in supernatural stories that have become cultural phenomena, like  “Twilight” and “The Mortal Instruments”.

In conclusion, please consider Christ’s Titles, and that He Who Holds of the Keys of David, Revelation 3:7, …  is the Faithful and True Witness, Revelation 1:5; 3:14,  … and is there helping you be faithful so as to come to know the full salvation of God.

Liberalism Featured The Dynamos Of Creditism, Corporatism, And Globalism … Authoritarianism Features The Singular Dynamo Of Regionalism

December 14, 2013

Financial Market Report for the week ending December 13, 2013

This post can be found in Google Document presentation here

1) … Liberalism’s three main drivers of economic life, creditism, corporatism and globalism, fail to support investment choice, evidencing the death of the Creature from Jekyll Island as well as the Milton Friedman Free To Choose Floating Currency Regime.

Milton Friedman was the Father of liberalism’s policy of investment choice, as well as the father of its schemes of debt trade investing, and currency carry trade investing. Without Milton Friedman, investors could never have profited from Nation Investment, EFA, and there would have never been Global Financial Investment, IXG, globalism supporting global industrial production, FXR, and global trade.

Liberalism’s debt trade and the currency carry trade is over, through, finished and done. The US Dollar can’t and won’t serve as the world’s reserve currency.

Richard Duncan posts in Bullion Vault a Podcast transcript titled Creditism & Growth from video newsletter Macro Watch, where Mr. Duncan talks with Porter Stansberry of Stansberry Radio about how creditism has been driving economic growth.

Richard Duncan: In this new age of paper money, as I call it, or fiat money, it’s credit growth that drives economic growth. I think we have a different kind of economic system than we used to. This isn’t capitalism anymore. I call it creditism.

Porter Stansberry: I like that.

Richard Duncan: Capitalism is driven by businessmen investing, making a profit, saving, accumulating capital, and repeating…hence capitalism. That was quite difficult but that’s how capitalism created economic growth. Well, since 1968, that’s not how our system has worked at all.

Our system has been driven instead by credit creation and consumption. And that’s created very rapid economic growth, much more so than traditional capitalism would have done. But again, as I said, it looks like creditism now is on the verge of imploding into a new great depression because the private sector can’t bear any more debt.

Richard Duncan: Well, it’s interesting. You know, I think something extraordinary is occurring, something completely separate from this paper money creation, and that’s globalization. And globalization is extremely deflationary. That’s because as a result of globalization, you no longer have to hire someone in Michigan and pay that person $200.00 a day to build a car. You can now hire your next worker in Western China and pay that person $10.00 a day, or even $5.00 a day in Chennai. So that means that the marginal cost of your next employee has dropped by 90-something percent. Nothing like this has ever happened in history, and it’s extremely deflationary.

So on the one hand; you have these extreme deflationary forces resulting because of globalization.

And they seem, at least for the time being, to be entirely offsetting the extraordinary inflationary pressures being created by the fiat money creation and all the credit creation. Creating something like a nirvana moment in history,

Porter Stansberry: But you know this has happened before in the 1920s, and back then it was Britain that was financing everything with new Dollars. And it was globalism that was keeping the inflation in check. But then all of a sudden, Smoot-Hawley came along and it became impossible to maintain that kind of international trade flows, and then everything fell apart.

The bull market has turned to bear market. The exhaustion of the world central banks monetary authority, on October 23, 2013, coming at the hands of the bond vigilantes calling the Interest Rate on The US Ten Year Note, ^TNX, higher from 2.48%, caused both the failure of credit growth, AGG, and currency growth, DBV, CEW, and which finally caused the failure of wealth growth, VT, on December 2, 2013; and will soon be a “genesis factor” in three things: 1) a fast falling stock market. 2) a fast occurring economic recession, 3) then an all out, credit bust and financial system breakdown, known as Financial Apocalypse, foretold in Bible prophecy of Revelation 13:3-4.

Richard Duncan wrote in May 2011 post of Richard Duncan Economics, Credit growth drives economic growth, until it doesn’t.  His article helps one further understand creditism.

2) … The singular dynamo of regionalism drives authoritarianism; regional nannycrats having pooled sovereignty and commanding seigniorage, that is moneyness, evidences the rise of the beast regime of regional governance and totalitarian collectivism.  

Inasmuch as fiat money, that is credit, AGG, together with Major World Currencies, DBV, and Emerging Market Currencies, CEW, died on October 23, 2013, and fiat wealth, VT, died on December 2, 2013, at the hands of bond vigilantes and the currency traders, one no longer is “free to choose” anything profitable for investment return, in what was a financialized and globalized world; rather one is a debt serf, in a regional gulag of diktat and debt servitude.

Inasmuch as liberalism’s fiat money and fiat wealth are both dead, liberalism as a paradigm and age, as well as its father Milton Friedman, is dead.  Nation State Investment, EFA, and Global Financial Investment, IXG, and Global Industrial Producer Investment, FXR, were activities of the prior paradigm and age of liberalism, where democratic nation state and banker sovereignty, established dynamos of creditism, corporatism and globalism, that supported policies of investment choice and schemes of credit and currency trade investment, for investment return.

Authoritarianism’s fathers are now emerging. Reporting from Open Europe, communicates that Greece and Ireland have been the test beds for evolving Eurozone regional economic government.  Now with regional nannycrats having pooled sovereignty, such be exercising budget powers in demanding more austerity in Italy and Spain, and establishing regionalism as the singular dynamo of economic life, in    the paradigm and age of authoritarianism, with the beast regime manifesting in regional governance with policies of diktat, and in schemes of debt servitude, establishing regional security, stability, and sustainability, to counter national economic recession, and to secure debt servitude.

Germany is pressing for Eurozone leadership. Open Europe publishes The First English Translation Draft Of The German Grand Coalition Agreement. The draft agreement states that the way out of the eurozone crisis is to “combine structural reforms and a strict, sustained continuation of budget consolidation.” The coalition will also be committed “to ensuring that the euro countries agree binding, enforceable and democratically legitimised contractual reform agreements at the European level.”

Authoritarianism features regional framework agreements, that is policies of diktat in regional governance, based upon regional fiscal sovereignty, and schemes of debt servitude in totalitarian collectivism. Open Europe reports Eurozone Reform Contracts Take Shape, And They Include Fiscal Transfers.

A profound change in the nature of government and moneyness is emerging. Regional government, not democratic nation states, is sovereign. And regional nannycrats, not banks and financial markets, provide seigniorage, that is moneyness.  Diktat policies of regional governance, and fiscal and debt servitude schemes of totalitarian collectivism, provide economic life in the EU.

Open Europe news reports FT  WSJ  FAZ  FAZ 2  Süddeutsche  Bild  Welt  Welt 2  Guardian: Posener clearly evidence that the beast regime of regional governance and totalitarian collectivism, with its seven heads occupying in each of mankind’s seven institutions, and its ten horns ruling in the world’s ten regional zones, presented in Revelation 13:1-4, is rising from sovereign, banking and corporate insolvency, and is making landfall in the Eurozone, occupying with feet of a bear in EU banking supervision in Frankfurt Germany; with mouth of a lion in NATO headquarters in Brussels; and camouflage of a leopard in ongoing technocratic governance in Greece as well as in ECB banking supervision from Berlin, and in nannycrat fiscal rule from Brussels enforcing budget rules demanding more austerity in Spain and Italy.

Jordan Shilton of WSWS reports Irish pseudo-left signs off on repaying EU bank bailout.  Ireland formally exited its €85 billion bailout from the troika of the European Union commission, European Central Bank, and International Monetary Fund this week. Agreed three years ago at the end of 2010, it has acted as a mechanism for a vast redistribution of wealth from the working class to the financial elite and the recapitalization of the country’s bankrupt financial institutions. Despite the rhetoric surrounding the formal exit from the programme emanating from the government, trade unions and the media, there will be no let-up in the austerity drive over the coming years. Prime Minister Enda Kenny confirmed that on December 16, the day after the bailout officially ends, his government will present an economic plan for the medium term, above all to reassure the financial markets that they will not let up in cutting public spending, attacking the wages and working conditions of the population and privatising public services.

Liberalism was characterized by monetary inflation, that is credit inflation, AGG, and currency inflation, that is Major World Currencies, DBV, and Emerging Market Currencies, CEW, fueling economic growth and global trade, where the banker regime financialized nation state fiat money.

Sober Look in Credit Writedowns Five Years Of QE And The Distributional Effects, communicates that liberalism featured the banker regime establishing investment choice. “Who really benefited since the first QE was launched? There is a great deal of debate on the topic, but here are a couple of facts. Financial asset valuations, particularly in the corporate sector have seen sharp increases. For example the S&P 500 index total return (including dividends) has delivered 144% over the 5-year period. Those who had the resources to stay with stock investments were rewarded handsomely .The housing recovery has certainly been helpful (for those who kept their homes), but according to the S&P Case-Shiller Home Price Index, US housing is up less than 5% over the past five years.”

But with the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, and economic recession coming from the failure of Credit, AGG, and Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging market Currencies, CEW, such as the Brazilian Real, BZF, as well as the failure of World Stocks, VT, becoming the new normal, these two forces (higher interest rates and economic recession) are the “genesis factors” for authoritarianism beast regime’s rise to power in regional integration, to establish regional security, stability, and sustainability, at the expense of crushing debt servitude.

Liberalism’s seigniorage, that is its moneyness, came via policies of credit, such as POMO, and the pursuit of yield, such as Junk Bonds, JNK, and carry trade investment, such as the EUR/JPY, juicing up World Stocks, VT,  risk assets such as Small Cap Pure Growth, RZG, and Nation Investment in Ireland, EIRL, its bank, IRE, and its companies, such as Seagate, STX, greatly rewarding investors.

Authoritarianism’s seigniorage comes in mandates of all kinds, such as in EU banking supervision, and in EU fiscal spending rules, and will result in a full fledged banking union, fiscal union, and economic union, where nannycrats exercise power in regional framework agreements to oversee the factors of production, commerce and economic trade, to establish regional security, regional stability, and regional sustainability.

While the Nordics, such as the Germans, the Dutch, and the Belgians will never be Latins, such as Greeks, the Spaniards and the Italians, all those living in Euroland will be one, living in a regional gulag of debt servitude, under the word, will and way of the Sovereign and the Seignior. The EU periphery will exist as hollow moons revolving around planet Berlin and planet Brussels.

The soon coming European Superstate comes from the concepts of the Euro’s Father, Columbia University Professor Robert Mundell, who received the 1999 Nobel Prize in Economics for his 1961 paper “A Theory of Optimum Currency Areas”, as cited by EconoLib.org and other internet resources.

The US Federal Reserve finally crossed the rubicon of sound monetary policy; the result was the failure of the US Fed money printing operation is seen in M2 Money trending lower. The US Federal Reserve site shows M2 Money peaked on 10-21-2013 at 10,988, Billion, and has been trending lower.

Just like fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, which died on October 23, 2013, M2 Money died, when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.

The bursting of the fiat money bubble, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, and now the fiat wealth bubble, VT, on December 2, 2013, is resulting in the emergence of an new form of money, that being diktat money, where the components of M2 Money, will be placed under capital controls and under transfer restrictions, and the factors of production, commercial businesses as well as trading organizations, are overseen by regional monetary and economic cardinals, that is regional nannycrats, working in statist public private partnerships and workgroups to establish regional, security, stability, and sustainability in response to economic recession, and its indicators, such as CPI deflation, and monetary deflation, that is the fall lower in the value of money, as well as the accumulation of M2 Money, dwindling lower in nominal value.

Ludwig Von Mises, wrote of the new order in Planned Chaos, relating “There are two different patterns for the realization of socialism.

The one pattern, we may call it the Marxian or Russian pattern, is purely bureaucratic. All economic enterprises are departments of the government just as the administration of the army and the navy or the postal system.”

“The second pattern,we may call it the German or Zwangswirtschaft system, differs from the first one in that it, seemingly and nominally, maintains private ownership of the means of production, entrepreneurship, and market exchange. So-called entrepreneurs do the buying and selling, pay the workers, contract debts and pay interest and amortization. But they are no longer entrepreneurs. In Nazi Germany they were called shop managers or Betriebsführer. The government tells these seeming entrepreneurs what and how to produce, at what prices and from whom to buy, at what prices and to whom to sell. The government decrees at what wages labourers should work, and to whom and under what terms the capitalists should entrust their funds. Market exchange is but a sham.”

3)  … The failure of fiat wealth that started Monday December 2, 2013, with the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher, from 2.74%, intensified as Mario Draghi announced a new monetary policy Mandate the week ending December 6, 2013.

Lukanyo Mnyanda and Anchalee Worrachate of Bloomberg report Italy’s Bonds drop with Spain’s on concern ECB to limit support A Mario Draghi Mandate prevents lenders from using future loans it provides to buy sovereign debt.

The ECB Mario Draghi December 6, 2013 banking and sovereign debt policy Mandate, establishes Mario Draghi as the EU’s Seignior, that is the top dog banker, who in minting money takes a cut, and establishes the Eurozone as a region of economic governance.

Last week, on Friday December 6, 2013, the world pivoted fully and completely out of the paradigm and age of liberalism, and into that of authoritarianism, on the announcement of the ECB Mario Draghi Mandate as is evidenced by the trade lower in World Financials, World Stocks and Nation Investment.

World Financials, IXG, closed 1.2% higher, on the day, 1.5%, lower on the week.

World Stocks, VT, closed 1.2% higher, on the day, 0.8%, lower on the week.

Nation Investment, EFA, close 1.2% higher, on the day, 1.3%, lower on the week.

Loss leaders for the week were the European Financials, EUFN, the Brazil Financials, BRAF, and Retail, XRT,  Major Airlines, and Apparel Retailers. Falling stock prices are a deflationary omen as well as a destabilizing economic factor causing economic recession.

European Financial, EUFN, closed 1.8% higher, on the day, 2.4%; lower on the week.

Eurozone Stocks, EZU, closed 1.4% higher, on the day; 2.1% lower on the week.

Ireland, EIRL, closed 1.2% higher, on the day; 1.5% lower on the week.

Italy, EWI, closed 1.5% higher, on the day; 3.5% lower on the week.

Greece, GREK, closed 0.4% lower, on the day; 1.8% lower on the week.

Spain, EWP, closed 0.8% higher, on the day; 3.2% lower on the week.

The failure of investment seigniorage in the European Financials, EUFN, which drove Euorpean Stocks, EZU, and EU Nation Investment, in Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, lower is most striking, given the rallying EURJPY, seen in chart of the spread between Ultra Long Euro, ULE, and Ultra Short Yen, YCL.

The chart of Eurozone Stocks, EZU, relative to Eurozone Debt, EU, that is EZU:EU, communicates that stocks are no longer able to leverage higher over debt. Eurozone nation states such as Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, no longer provide investment seigniorage, that is investment moneyness.

In Europe, recession is underway: genuine disinflationary and deflationary cycle is at work: disinflation (falling prices) and deflation (falling aggregate demand) are both occuring.  And now with the trade lower in fiat wealth, that is World Stocks, VT, on the week ending December 6, 2013, coming on the rise of the Benchmark Interest Rate, ^TNX, to 2.88%, a marked epic change has occurred, that being the destruction of both fiat money defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, as well as fiat wealth, defined as Eurozone Stock, EZU. These are trading lower evidencing that the world has pivoted out of the paradigm and age of liberalism, and into that of authoritarianism.

On Monday, December 9, 2013, Fiat wealth, that is World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, failed to trade higher on a rallying EUR/JPY, which closed at 141.90, and failed to trade higher on the trade lower in Aggregate Credit, AGG, as the bond vigilantes took profits, resulting in a trade lower in the Interest Rate on the US Ten Year Note, ^TNX, to 2.86%, thus evidencing the failure of trust in the democratic nation state and banker regime’s monetary policies to continue global growth, that commenced on October 23, 2013, when the rate rose above 2.48%

Given the failure of the seigniorage, that is the moneyness of carry trade investing, as well as debt trade investing, seen in Aggregate Credit, AGG, trending lower, and Junk Bonds, JNK, trading higher, it is reasonable to conclude that the sovereignty of the democratic nation state and banker regime has failed.

A failure of both sovereignty and seigniorage communicates that fiat money is dead; it is reasonable to conclude that out of waves of national and global recession, new sovereignty and new seigniorage will produce  new money.

Sectors trading higher on the lower Benchmark Interest Rate, ^TNX, and on the continuing rise in the EUR/JPY carry trade, were the global growth sectors, Resorts and Casinos, BJK, IPOs, FPX, which manifested a blow off top, Social Media, SOCL, Transportation, XTN, Nasdaq Internet, PNQI, and Semiconductors, SMH, such as Micron, MU, and Texas Instruments, TXN.

Infrastructure industrial producers trading higher included Textile Manufacturer, MHK, Alcoa Aluminum, AA,  Steel Producers, SLX, such as, CMC, SXC, ROCK, X, STLD,  Metal Manufacturers, such as ATI, AKS, VMI, GSM, CRS, MLI, RS, PCP, GHM, AZZ, HAYN, TOWN, PKOH,  Industrial Miners, such as ZINC, SLCA,  Machine Tool Manufacturers, such as NNBR, CVR, ROLL, HDNG,  ITW,  Automation Providers, such as ROK, AME, SXI,  Major Chemical Manufacturers, such as CE, FMC, ARG,  Cleaning Product Manufacturers, such as ECL,  Cement Manufacturers, such as EXP, and Specialty Chemical Manufacturers, such as PPG, seen in this Finviz Screener.

Sectors trading lower included Solar Energy, TAN, Spin Offs, CSD, traded lower. Industrial Metal Mining, PICK, also traded lower on a lower BHP Billiton, BHP, a lower Uranium Miners, URA, a lower Rare Earth Miners, REMX, and a lower China Minerals, CHIM.

Yield bearing sectors trading higher included Real Estate, IYR, and Global Telecom, IST,  on the lower Benchmark Interest Rate, ^TNX.

Yield bearing sectors trading lower included Australia Dividends, AUSE, Electric Utilities, XLU, North American Energy Partnerships, EMLP, and Global Real Estate, DRW; these traded lower as the trade lower in interest rates was only miniscular, and was not enough lower to boost these higher.

Aggregate Credit, AGG, traded slightly higher; Junk Bonds, JNK, rose to a new rally high, on the lower Benchmark Interest Rate, ^TNX, and the continuing rise in the EUR/JPY carry trade.

India Earnings, EPI, and Brazil Financials, BRAF, traded higher, taking Emerging Market Financials, EMFN higher, on a higher India Rupe, ICN, and on a higher Brazilian Real, BZF, and on today’s much lower Japanese Yen, FXY, which closed at 94.57.

Nations trading higher on a trade lower in the Benchmark Interest Rate, as well as on a continuing rise in the EUR/JPY carry trade included Egypt, EGPT, Mexico, EWW, South Korea, EWY, Argentina, ARGT, Russia, RSX, and ERUS,  …  India, INP and SCIN, on a continuing rise in the ICN/JPY carry trade …. Brazil, EWZ, and EWZS, on a continuing rise in the  BZF/JPY carry trade …. The Eurozone, EZU, Spain, EWP, Italy, EWI, and Greece, GREK, as well as the European Financials, EUFN, such as the National Bank of Greece, NBG, on a continuing rise in the EUR/JPY carry trade. The Nikkei, NKY, traded higher on the strongly lower Japanese Yen, FXY, which closed at 94.57.

Nations trading lower included Australia, EWA, KROO, and Philippines, EPHE,  And China, YAO, traded, with China Small Caps, ECNS, China Industrials, CHII, China Financials, CHIX, and China Real Estate, TAO, all lower

Gold, GLD, traded 1.0% higher and Silver, SLV, traded higher 1.9% higher; these like a ball filled with air pops higher after having been submerge, taking Gold Miners, GDX, 2.6% higher.  If I were to invest in a gold mining stock, NGD, 3.8% higher or RGLD, 2.4%, higher, would be my choices. If I were to invest in a silver mining stock, SLW, 2.8% higher, or HL, 2.8%, higher, would be my choice.

On Friday December 6, 2013, Bloomberg reported Italy’s Bonds Drop With Spain’s on concern ECB to limit support. Italian 10-year bonds fell, with yields rising the most in more than two months, on speculation the European Central Bank will prevent lenders using future loans it provides to buy sovereign debt. Spanish 10-year securities dropped for a third week. German 10-year yields climbed by the most since August as a report yesterday showed U.S. employers added more workers in November than analysts forecast and the jobless rate dropped, boosting the case for the Federal Reserve to cut stimulus. The ECB wants to ensure any future offerings of long-term cash find their way into the economy, and not hoarded by banks, President Mario Draghi said after a policy meeting in Frankfurt.

ECB monetary policy changed effective Friday December 6, 2013; no more OMT; it no longer exists; it is gone forever. The ECB no longer underwrites banks, this means that credit growth is no longer provided to European Financial Institutions, EUFN, specifically Ireland’s, IRE, Spain’s, SAN, Greece’s, NBG, and Germany’s DB, for the purpose of purchasing nation state treasury debt.

On Monday, Eurozone Stocks, EZU, were carried higher on the higher EUR/JPY carry trade, and EU Debt, EU, traded lower, on both the trade lower in the Benchmark rate, and on the December 6, 2013, ECB Mario Draghi Mandate that prevents lenders from using future loans it provides to buy sovereign debt.

The December 6, 2013, ECB Mario Draghi monetary policy Mandate, that prevents lenders from using future loans it provides to buy sovereign debt, establishes Mario Draghi as the EU’s sovereign monetary authority, specifically as the EU’s Seignior, that is top dog banker, who in minting money, takes a cut, and establishes the EU as a region of economic governance, having policies of diktat, and schemes of debt servitude.  The Mario Draghi monetary policy Mandate establishes Mario Draghi as father of Eurozone regional governance.

The December 6, 2013, Mario Draghi monetary policy Mandate, means the end of low Treasury Debt Interest Rates in the EU. It terminates liberalism as both a paradigm and age; the democratic nation state and banker regime that was liberalism’s vessel of economic experience, has been sterilized, better said, destroyed as if by a neutron bomb, that leaves the structure intact, but obliterates all life inside. The ECB Draghi Mandate pivots the EU into authoritarianism, as both a paradigm and age.

Now, business credit comes from EU’s Seignior, Mario Draghi, and sovereign credit comes from the sovereign debt market place, as it should have been all along, which means funding of Eurozone nation Treasury Debt, will be nada, nothing, and not forthcoming, as buyers of this debt know that the PIIGS are insolvent sovereigns and their banks insolvent financial institutions.  The funding of nation state fiscal spending has been literally cut off by the ECB Mario Draghi December 6, 2013 Mandate. While seemingly to support creditworthy firms, the Mandate is the “genesis factor” that introduces deep recession by eliminating the ECB OMT funding of the EU nation states fiscal budgets.

Eurozone nation states, such as Portugal, Italy, EWI, Greece, GREK, and Spain, EWP, must look to the financial marketplace to purchase Treasury Debt.  Eurozone fiscal seigniorage, that is fiscal moneyness, that came through LTRO 1, 2, and OMT, has been dealt a lethal blow, and as a result democracy nation state sovereignty has collapsed overnight as a result of ECB Mario Draghi’s diktat that prevents lenders from using future ECB loans to buy sovereign debt.

New regional sovereignty has emerged in Europe. The Eurozone, as a region of economic governance, was fathered, that is has come into being, by the December 6, 2013, Mandate of the ECB’s Chairman.  Mario Draghi.  In announcing the Mandate that prevents lenders from using future loans the ECB provides to buy sovereign debt, Mario Draghi has destroyed liberalism’s fiat money, and has minted diktat money, that is money that comes by decree, and has announced Eurozone regional economic governance without any democratic constitution.  Eurozone regional economic governance has simply come into being through the word, will, and way of Mario Draghi; this establishes Mario Draghi as the EU’s Seignior in charge of regional monetary policy and regional credit.

Life under liberalism was an experience in a debt trade and a currency carry trade, as is seen in the ongoing Yahoo Finance chart of Electric Utility, Vectron, VVC, together with Asset Manager, Blackrock, BLK, and Retail REIT, SPG, Iron Ore Miner, RIO, Steel Producer X, and Life Insurance Company, PUK.  Life was a series of puts, as Forbes reported Bernanke doubles down on Greenspan Put, Larry Summers exhales in comment at the start of QE3.

Life under authoritarianism is an experience in debt servitude; now, life is a series of calls, such as the call of the bond vigilantes of the Interest Rate On the US Ten Year Note, ^TNX, higher, and the Mario Draghi call to experience in policies of regional governance and schemes of austerity and debt servitude as AP reports Ireland faces more austerity as bailout era ends.

Zac Hambides of WSWS reports Rio Tinto shuts down Gove Australia alumina refinery. Global mining giant Rio Tinto announced late last month it would shut down its alumina refinery on the Gove peninsula in the Northern Territory, directly destroying 1,100 jobs. The decision will devastate the remote town of Nhulunbuy, 1,000 km from the nearest city of Darwin, which has a population of 4,000 and is heavily dependent on the plant.

An inquiring mind asks, did you benefit from the Ben Bernanke put? …  Are you hearing the calls?

Under liberalism bankers waived wands of credit and carry trade investing, producing fiat wealth; but now, under authoritarianism nannycrats govern with clubs of debt servitude.

Bible prophecy of Revelation 13:1-4, and Revelation 13:5-10, foretells that out of ever increasing waves of Southern Europe sovereign insolvency, banking insolvency, corporate insolvency, and recession, the Sovereign will emerge to rule Europe. He will be supported by the Seignior who mints the Sovereign’s diktat money.  The word, will and way of these two, will replace all traditional constitutional, nation state and regional law, as they rule in diktat policies of regional economic governance, and in debt servitude schemes of totalitarian collectivism.

The December 6, 2013, Mandate of Mario Draghi is powering up the singular dynamo of regionalism for the purpose of regional stability, regional security, and regional sustainability. While purposed for economic growth, the ECB Mario Draghi Mandate that prevents lenders from using future loans the ECB provides to buy Treasury Debt, EU, has destroyed nation state investment, EFA, specifically in the Eurozone, EZU, that is investment in Portugal, Italy, EWI, Ireland, IRE, Greece, GREK, and Spain, EWP, has destroyed Global Financial Investment, IXG, and European Financial Institution Investment, EUFN, such as in Ireland’s bank IRE, Greece’s bank NBG, and Spain’s bank, SAN.

The ECB Chairman, Mario Draghi’s December 6, 2013 Mandate has commenced the destruction of fiat wealth, that is Stock Wealth, VT, and will create a global economic recession, and is the “genesis factor” of a soon coming global credit bust and financial system breakdown, that being Financial Apocalypse, as foretold in Bible prophecy of Revelation 13:3-4.

Authoritarianism is characterized by monetary deflation, that is credit deflation, AGG, BWX, EU, and currency deflation, DBV, CEW, FXE, all turning lower in value, stimulating investors to derisk out of fiat wealth, that is World Stocks, VT, as is seen in the Risk Off ETN, OFF, rising in value, which terminates global economic growth and global trade, and introduces economic recession where the beast regime of regional governance and totalitarian collectivism rules via diktat money.

On Tuesday, December 10, 2013, bond vigilantes took further profit, and the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.80%, enabling Aggregate Credit, AGG, and European Debt, EU, to trade higher. Junk Bonds, JNK, manifested a spinning doji at the top of an ascending wedge, with Losa Abramowitz reports State Street’s $9.7 billion junk-bond ETF reported its biggest one-day redemption since June on Friday December 6, 1013. .

World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG, all traded lower on an unwinding ICN/JPY carry trade, and an unwinding EUR/JPY carry trade, with Investing.com chart showing close at 141.45. Rodrigo Campos of Reuters reported S&P 500 slips from record. Stocks fell a day after a record close on the S&P 500. The Fed’s policy-setting Federal Open Market Committee meets Tuesday and Wednesday next week.

World Stocks, VT, -0.1%, as investors deleveraged out of:  1)  Global Growth Investment, Small Cap Industrials, PSCI, -1.2%, Spin Offs, CSD, -1.1, Transportation, XTN, -1.0, Pharmaceuticals, PJP, -0.9%, Small Cap Pure Growth, RZG, -0.8%, Biotechnology, IBB, -0.8, and 2)  Consumer Spending Investment, Small Cap Consumer Staples, PSCC, -2.1%, Small Cap Pure Value, RZV, -1.1%Small Cap Consumer Discretionary, PSCD, -1.0%, Food and Beverage, PBJ, -0.9%

Global Financials, IXG -0.4% with Regional Banks, KRE, -1.0%, with leaders SNV, RF, ZION, USB, trading lower. Of note, credit providers, Sallie Mae, SLM, and Visa, V, traded lower

Nation Investment, EFA, -0.2 %. The Philippines, EPHE, and Singapore, EWS, EWSS, fell strongly lower.  India Infrastructure, INXX, India Small Caps, SCIN, India, INP, and India Earnings, EPI, traded lower on an unwinding ICN/JPY carry trade.  Eurozone, EZU, and European Financials, EUFN, traded lower on an unwinding EUR/JPY carry trade. China, YAO, traded, lower with China Small Caps, ECNS, China Industrials, CHII, China Financials, CHIX, and China Real Estate, TAO, trading lower, as the Chinese Yuan, CYB, popped higher in recognition that it has been set free from PBOC intervention.  The Nikkei, NKY, traded lower. The rising trade in Hong Kong, EWH, relative to Shanghai, CAF, and China, YAO, suggests that this whole complex, is set for a correction.

In the yield bearing sectors, Utilities, XLU, -1.0%, Dividend Appreciation, VIG, -0.5%, North American Energy Partnerships, AMJ, -0.4, Energy Partnerships, AMJ, -0.3

Social Media, SOCL,  rose 4.6, Nasdaq Internet, PNQI, 1.5%, and Internet Retailers, FDN, 0.9%; all  to new rally highs.

Gold, GLD, blasted 1.7% higher, and Silver, SLV, traded higher 2.9% higher; these very much like a ball filled with air pops higher after having been submerge, taking Gold Miners, GDX, 3.8% higher, and Silver Miners, SIL, 4.0% higher.

The Investor’s Weather Vane ETFs, Call Write Bonds, CWB, -0.1%.

Volatility ETFs, TVIX,VIXY,VIXM, seen in this Finviz Screener, traded higher.

Volatility, XVZ, and the other ETFs, seen in this Finviz Screener have bottomed out, and could be used as a basis of margin for a short selling account.

Open Europe relates Les Echos Le Figaro Le Express Les Echos Irish Times  report The French National Union of Liberal Professions (UNAPL) representing 750,000 professionals in the service sector have launched a nationwide campaign declaring in a leaflet to all French households that they are “asphyxiated” by taxation and excessive government regulation.

Mike Mish Shedlock reports  French Industrial Output drops unexpectedly; France Finance Minister in complete denial; Expect the unexpected.

Reuters report Greek deflation hits record in November, at -2.9 pct  And Euro News reports Greek deflation at record and could threaten future recovery from recession. And CNBC reports EADS cuts 5,800 jobs amid massive restructuring The aerospace and defense giant, which is part-owned by the French and German governments, has around 140,000 employees worldwide.

On Wednesday, December 11, 2013, Fiat Money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower again, driving fiat wealth, VT, lower.

Global Financials, IXG, led Nation Investment, EFA, and World Stocks, VT, lower, as the Bond Vigilantes continued calling the Benchmark Interest Rate, ^TNX, higher from 2.8%, and steepening the 10 30 US Sovereign Debt Yield Curve. The volatility ETFs, TVIX,VIXY,VIXM, rose strongly higher as volatility, ^VIX, burst out.

The bond vigilantes in calling the Benchmark Rate, ^TNX, higher from 2.8%,  and in steepening the 10 30 US sovereign debt Yield Curve, $TNX:$TYX, are effecting eight pivotal economic changes: 1) destroying Banks, IXG, worldwide,  2) destroying the sovereignty and seigniorage of nation states, EFA, such as debt impaired Italy, EWI, global trade South Korea, EWY, global industrial mining Australia, EWA, the current account deficit BRICS, EEB,  3 and 4) destroying global industrial production and global growth,  5) and are destroying yield investment in Real Estate, IYR, Global Real Estate, DRW, and Global Utilities, DBU, Utilities, XLU, Global Telecom, IST, Global Health Care, IXJ, and Health Care Provider, IHF, and Medical Devices IHI, as is seen in the ongoing Yahoo Finance chart of DRW, IST, PSP, DBU, IXJ, and IHI,  6) investment in consumer spending, 7) investment in infrastructure development, 8) energy production.

The currency traders in selling currency carry trades reinforces the destructionism of bond vigilantes. For example, the currency traders have followed on the heels of the bond vigilantes by selling the Swedish Krona Japanese Yen cross, SEK/JPY, FXS:FXY, destroying nation investment in Sweden, EWD, and its consumer goods producer and automobile parts manufacturer, ALV.

In short the bond vigilantes, by calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.80%, and the currency traders by selling currency carry trades, have have introduced financial market risk, into what was under QE a riskless trade, and have pivoted the world out of the paradigm and age of liberalism and into that of authoritarianism. Their combined actions are unleashing waves of recession, and societal strife commencing Kondratieff Winter.

The Elliott Wave 3 of 3 Up that commenced with the bond vigilantes calling the Benchmark Interest Rate, $TNX, higher from 2.48%, on October 23, 2013, seen in the Risk Off ETN, OFF, trading higher,   has unleashed destructionism replacing inflationism, and has pivoted the world out of the paradigm and age of liberalism and into that of authoritarianism. The Elliott Wave 3 of 3 Waves are the most sweeping of all waves, they create the bulk of wealth on the way up, and destroy most of the wealth on the way down. This wave will make the bankers holding Interest Rate Swaps, that came as part of liberalism’s POMO, awesomely wealthy.

Mankind has always been subjected to economic and political waves, and out the waves of sovereign, banking, and corporate waves of Club Med, that is Portugal, Italy, Greece, and Spain, will come a type of revived Roman Empire, seen in Revelation 13:1-4, that is one led by an Emperor, foretold in Revelation, 13:5-10, and accompanied by a Monetary and Economic High Priest, presented in Revelation 13:11-18.

Global Financials, IXG, traded 1.5% lower today, on awareness of the ECB’s Mario Draghi Mandate, and awareness that Chinese Banks, not the PBOC, will bear lending losses.

China Financials, CHIX, -3.5, Chinese financials led the way lower as MarketWatch reveals that China officials mandated that they share lending risks amongst themselves; and that the PBOC will not be responsible for lending failures.

India Earning, EPI, -2.4

Brazil Financials, BRAF, -2.4

India Earnings, EPI, -2.5

Too Big To Fail Banks, RWW, -1.5

Regional Banks, KRE, -1.2

European Financials, EUFN, -1.0

Stock Brokers, IAI, -1.0

Nation Investment, EFA, traded 1.0% lower; nations trading lower included the following

Brazil, EWZ, -3.1%, Brazil, a global trade nation, with a large current account deficit, as well as a massive amount of debt of all type, traded lower on the rise of the Interest Rate from 2.8%. The Nation of Brazil, EWZ, the Brazil Financials, BRAF, Brazil Infrastructure, BRAF, are at the lead of the pivoting of the world out liberalism and into authoritarianism.

India, INP, -3.1%, India, a nation having a large current account deficit, traded lower now that an important election is over.

China, YAO; -2.9%, China, a leading global industrial production nation is adversely affected by the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher from 2.89%, and the evaporation of global trade, as wll as credit concerns, read interest rate issues, in its banking sector, CHIX. are destroying nation investment in China, as MarketWatch reported that China Financial Institutions, CHIX, will bear lending risk and not the PBOC government.

Indonesia, IDX, -2.5; Indonesia, a nation with a large current account deficit, traded lower on the rise of the Benchmark Interest Rate from 2.80%.

Turkey, TUR, -2.5

South Africa, EWA, -2.1

South Korea, EWY -2.1; South Korea, a leader in global growth, traded lower on the call higher of the Benchmark Interest Rate, ^TNX, from 2.80% on December 11, 2013.  Liberalism’s Global ZIRP regime was the platform for global industrial production, such as Steel production, SLX, and electronics production, such as Samsung.  But the “extinction event” of the bond vigilantes calling the Interest Rate, ^TNX, higher from 2.48%, on October 23, 2013, and calling the Benchmark rate, ^TNX, higher once again, on December 11, 2013, from 2.80%, terminated the seigniorage, that is moneyness, of nation investment in South Korea, EWY, its banks, KB Financial Group, KB, Woon Financial, WF, Shinhan Financial, SHG, global industrial production of Steel, SLX, and yield investing in Global Utilities, DBU, such as Electric Utility, KEP

US Small Caps, IWM, -1.7; The US small caps, being interest rate sensitive, traded lower on the higher Benchmark, ^TNX, Interest Rate, from 2.8%, and on the trade lower in Regional Banks, KRE.

Mexico, EWW, -1.7

Russia, RSX, -1.6

Australia, EWA, -1.5; Australia, a industrial metal mining leader, PICK, traded lower on the trade lower in the AUD/JPY carry trade, and on the rise in the Benchmark Interest Rate, ^TNX from 2.80%.

Greece, GREK, -1.6

Italy, EWI, -1.6; Italy is at the leading edge of concern over the sustainability and issuance of Eurozone nation Treasury Debt, EU, now that the ECB’s Mario Draghi Mandate of December 6, 2013, prevents lenders from using future loans it provides to buy sovereign debt

Sweden, EWD, -1.5, Sweden a global trade nation, with a current account deficit is experience investment derisking coming at the hands of the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher, from 2.80%, coupled with the currency traders selling the Swedish Krona Japanese Yen carry trade, that is the SEK/JPY, FXS:FXY.

World Stocks, VT,  traded 1.2 lower, on the call higher of the Benchmark Interest Rate, ^TNX, from 2.8%. All investment areas traded lower.

Global growth investment; sectors trading lower included.

Solar, TAN, -3.6

Social Media, SOCL -3.4

Medical Devices, IHI, -3.1, such as Ireland’s COV,

Spin Offs, CSD, -2.5

Biotechnology, IBB, -2.5

Nasdaq Internet, PNQI, -2.2

Pharmaceuticals, PJP -2.1 such as JNJ

Software, IGV -1.8

Transportation, XTN, -1.5

Semiconductors, SMH, -1.5

Global Industrial Production investment; sectors trading lower included

China Industrials, CHII, -1.8

Global Industrial Producers, FXR, -1.8

US Production, PKB, -1.8

Consumer spending investment, sectors trading lower included

Nasdaq Internet, PNQI -2.1

Healthcare Producers, IHF, -2.1

Risk Investment, RZV, -1.8

Internet Retail, FDN, -1,.5

Infrastructure investment; sectors trading lower included

Coal Producers, KOL, -2.5

Alcoa Aluminum, AA, -2.3

Steel, SLX, -2.3

Timber Producers WOOD, -2.0

Industrial Metal Mining, PICK, -1.9

Automobile Producers, CARZ, -1.8

Copper Miners, COPX, -1.5

Yield bearing investment; sectors trading lower included

Industrial Office REITS, FNIO, 2.2

Real Estate, IYR, -2.2

Residential REITS, REZ -2.2

Global Real Estate, DRW, -1.8

Global Utilities, DBU, -1.3

Aggregate Credit, AGG, traded lower, as the bond vigilantes, called the Interest Rate on the US Ten Year Note,  ^TNX, higher to 2.84%, and steepened the 10 30 US Sovereign Debt Yield Curve. And Junk Bonds, JNK, traded lower from its all time rally high.

On Thursday, December 12, 2013, Global Financials, IXG, 0.6% lower, forcing Nation Investment, EFA, 0.7%, lower, and World Stocks, VT, traded 0.6%, lower

Global Financials, IXG, traded 0.6% lower. on unwinding currency carry trade investing, and on awareness of the ECB’s Mario Draghi Mandate.

India Earning, EPI, -1.9

Brazil Financials, BRAF, -2.3

European Financials, EUFN,  -1.5, closed lower on the ECB’s Mario Draghi Mandate.

Nation Investment, EFA, traded 0.7% lower. Nations trading lower included the following

Australia, EWA, -2.5%, closed lower on an unwinding AUD/JPY carry trade.

India, INP, -2.5, closed lower on an unwinding INR/JPY carry trade.

Sweden, EWD, -2.0, closed lower on a higher Interest Rate on the US Ten Year Note.

Norway, NORW, -1.8, closed lower on a higher Interest Rate on the US Ten Year Note.

Switzerland, EWL,-1.6, closed lower on a higher Interest Rate on the US Ten Year Note.

Netherlands, EWN, -1.5%, closed lower on awareness of the ECB Mario Draghi Mandate.

Italy, EWI, -1.2%, closed lower on awareness of the ECB Mario Draghi Mandate.

Spain, EWP, -1.1, closed lower on awareness of the ECB Mario Draghi Mandate.

Ireland, EIRL, -1.0, closed lower on awareness of the ECB Mario Draghi Mandate.

Philippines, EPHE, -1.0

United Kingdom, EWU, -1.0, closed lower on awareness of the ECB Mario Draghi Mandate.

World Stocks, VT, traded 0.6% lower; Stocks trading lower on unwinding carry trade investment included the following

In the United Kingdom

PUK, out of EWU -1.0% … GBPJPY, closed lower at 169.02; this is also seen in FXB:FXY

WPPGY, out of EWU … GBPJPY

ARMH, out of SMH, -1.0%, and out of EWU … GBPJPY

DEO, out of PBJ, -1.0%, and out of KXI, -1.0%, and out of EWU … GBPJPY

RUK, out of PBS, and out of EWU … GBPJPY

SNN, out of IHI, and out of EWU … GBPJPY

LYG, out of IXG, and out of EWU … GBPJPY

The chart of GBPJPY, together with EWU, PUK, WPPGY, ARMH, DEO, RUK, SNN, and LYG, communicates that the leading Global Financial Institution, IXG, Lloyds Banking Group, LYG, together with the British Pound Sterling Japanese Yen currency carry trade, has given seigniorage to UK Stocks, EWU, over the last two years.

PUK, has very much been a debt trade, this is seen in its Long Term Debt to Equity Ratio of 1.0.

DEO, has very much been a debt trade, this is seen in its Long Term Debt to Equity Ratio of 1.1

In Switzerland,

TEL, out of EWL  -1.6%, … DKK/JPY,  closed lower at 19.05

ABB, out of EWL … DKK/JPY

NVS, out of PJP, and out of EWL … DKK/JPY

UBS, out of EUFN, -1.5%, and out of EWL … DKK/JPY

In India,

TTM, out of CARZ, and out of INP, -2.5%,  … INR/JPY, closed lower at 1.67

WIT, out of INP … INR/JPY

SSLT, out of INP …  INR/JPY

INFY, out of INP … INR/JPY

EPI, -1.9%, … INR/JPY

IBN, out of INP  … INR/JPY

HDB, out of INP … INR/JPY

In the Eurozone, stocks traded lower, despite a rising EUR/JPY, on awareness of the ECB’s Mario Draghi Mandate.

STX, out of EIRL, -1.0, EZU, -1.0% … EUR/JPY, traded higher to close at 142.40

CRH, out of EIRL, EZU … EUR/JPY

COV, out of EIRL, EZU … EUR/JPY

IRE, out of EUFN, -1.5%, and out of EIRL, EZU … EUR/JPY

SAN, out of EUFN, -1.5%, and out of EWP, -1.1, EZU … EUR/JPY

AEG, out of EWN, -1.5%, EZU … EUR/JPY

ASML, out of EWN, EZU … EUR/JPY

VPRT, out of EWN, EZU … EUR/JPY

ENL, out of PBS, and out of EWN, EZU … EUR/JPY

PHG, out of EWN, EZU … EUR/JPY

ING, out of EWN, EZU … EUR/JPY

CBI, out of FLM, and out of -1.1 EWN, EZU … EUR/JPY

NBG, out of EUFN, -1.5%, and out of GREK, EZU … EUR/JPY

CCH, out of GREK, EZU … EUR/JPY

EWI, -1.2%, EZU  … EUR/JPY, traded lower on awareness of the ECB’s Mario Draghi Mandate.

BUD, out of PBJ, -1.0, and out of KXI, -1.1, and out of EZU… EUR/JPY

NVO, out of PJP, and out of EZU … EUR/JPY

BHP, out of EWA, -2.5% … AUD/JPY, closed lower at 92.39

WBK, out of EWA … AUD/JPY

AUSE, -2.0 out of EWA … AUD/JPY

Sectors trading lower included

Global growth investment

Semiconductors, SMH, -1.0

Medical Devices, IHI, -1.0

Pharmaceuticals, PJP, -1.0

Infrastructure investment

Networking, IGN, -1.1

Design Build, FLM, -1.0

Industrial Metal Mining, PICK, -1.0

The bond vigilantes and currency traders, being active in destructionism, are causing investment derisking out of infrastructure investment as is seen in the Bloomberg report Cisco cuts sales forecast as emerging market sales stall. Cisco Systems, CSCO, the biggest maker of computer-networking equipment, reduced its revenue forecast for the next three to five years amid weaker demand from emerging markets and telecommunications-service providers. The company expects average sales growth of 3 percent to 6 percent in the coming years, Chief Financial Officer

Consumer spending investment

Food and Beverage, PBJ, -1.0

Health Care Providers, IHF, -1.0

Consumer Staples, KXI, -1.0

Global industrial production investment,

China Industrials, CHII, -1.8%

Gold, GLD -2.1%, and Silver, SLV, -3.8%. Aggregate Credit, AGG, -0.15%, as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.88%. Major Currencies, DBV, -0.4%, and Emerging Market Currencies, CEW, -0.1%.

On Friday December 13, 2013, the financial markets were very quiet; there was little trading action, as all awaited Fed Speak. The Yen, FXY, recovered from a five year low, causing the EUR/JPY to close slightly lower at 142.20

Global Financials, IXG, traded slightly higher, as Japan’s Banks, MTU, and NMR, and Credit Provider, IX, and India Earnings, EPI, traded lower.

World Stocks, VT, traded slightly lower, as Energy Production, XOP, traded slightly lower; this is an investment avenue that I usually do not cover as it seems fairly priced to me. I present the investment leaders in this Finviz Screener; of note, Anadarko Production, APC, plummeted 6.4%. Software, IGV, US Infrastructure, PKB, Resorts and Casinos, BJK, and Small Cap Pure Value, RZV, traded higher.

Nation Investment, EFA, traded slightly lower as Greece, GREK, traded 2.7% lower, and the National Bank of Greece, NBG, traded 1.-% lower, and as Indonesia, IDX, a nation with a large account deficit, traded 1.2% lower; it has experienced the most debt deflation coming from the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher form 2.48% on October 23, 2013.  Norway, NORW, Australia, EWA, and Sweden, EWD, traded 1.0% higher.

In yield bearing sectors, Global Telecom, IST, traded 0.8% lower.

Of note, the Inverse of Japanese Government Bonds, JGBS, traded higher to close the week higher.

IRP Poverty Dispatch reports Poverty in Southern California.

Reuters report Regulators seek to curb Wall St. trades with Volcker rule

Open Europe relates that  FT City AM Reuters Reuters  EurActiv European Voice Welt FAZ Süddeutsche Süddeutsche 2 Handelsblatt Handelsblatt 2 report Bail-in rules moved up as part of banking union deal It was confirmed yesterday that the rules on bank bail-ins will come into force two years earlier in 2016 as part of the eurozone’s deal on a single bank resolution mechanism. Despite the tough bail-in rules, the agreement still provides some flexibility for public funds to be used, albeit with strict conditions. Handelsblatt reports that ECB Executive Board Member Jörg Asmussen said, “I have some concerns over the planned decision-making process between the resolution board, EU Commission and Council of Ministers on winding down a bank…It has to be ensured that a bank can be closed in an orderly manner over a weekend.”

GATA reports China prepares for financial warfare, Zheng Gang says

Market Sanity relates GOP budget deal a ‘two-year vacation’ David Stockman says

Arnold King, writing recently on October 15, 2013, presents details leading to the prior financial system collapse Private securitization and the housing bubble

Reuters reports Machinists reject second Boeing labor contract offer. The deal included increased signing bonuses, dropped plans to reduce the pace of wage increases for new workers, and offered concessions on dental benefits. Plus: Sides disagree on how talks collapsed

Simon Smith, CFA of ETF Strategy UK reports Global ETF and ETP assets continue to surge. Global
Exchange Traded Fund (ETF) and Exchange Traded Product (ETP) assets hit yet another record high at the end of November, as the combination of $17.0 billion in net inflows and positive market performance pushed assets to $2.4 trillion, according to preliminary findings from ETFG, a London-based consultancy.

Seamus Coffeys posts in Irish Economy the Irish Times report Irish Finance Minister Noonan vows to end cycle of boom-and-bust economics. A recording of the short address given and the subsequent Q&A session is available here.

Open Europe reports Eurozone inches towards banking union, but may need to resort to intergovernmental treaties  And it further relates  WSJ FT FT 2 Handelsblatt Reuters Deutschland

EU finance ministers reached a broad political compromise on the general framework for the eurozone’s single bank resolution mechanism. The structure is broadly based on the German compromise position laid out over the past few days. A resolution board made up of national authorities will take decisions on resolving or winding down cross-border banks, while the European Commission will have to approve any proposals. However, the balance of power and who has the final word in case of disagreement between national supervisors and the Commission is yet to be finalised.

A centralised fund worth €55bn will be phased in over the course of a decade using industry levies. However, any use of centralised European funds will require a two-thirds majority (with weights according to the ECB’s capital key) – meaning Germany, the Netherlands and Finland would together have a blocking minority. The legal base for the fund remains uncertain. An intergovernmental treaty could be used, although some member states remain opposed to this option.

The rules on bank bail-ins, known as the Bank Recovery and Resolution Directive, will now come into force in 2016 rather than 2018. It remains unclear what will happen if a bank needs to be resolved or recapitalised in the interim – national funds will play a role but their use will remain under national control. Daily meetings will take place over the next week to try to ensure a deal is reached before the meeting of EU leaders on 19 December.

4)  Liberalism featured the dynamos of creditism, globalism, and corporatism

Many Austrian Economists fear more bubbles coming from the Fed; they fail to comprehend that fiat money, defined as Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, died.  And that, of necessity, the Creature that blew the bubbles is dead.

Being focused on bubbles they fail to comprehend that economics and politics pivoted from liberalism into  authoritarianism, when the bond vigilantes called the Interest Rate on the US Note, ^TNX, higher from 2.48%, on October 23, 2013.

Another word for credit is trust. In a relative short period of time, many will come to have such great trust in the beast, which has replaced the creature, that their economic activity will constitute worship, as foretold in Revelation 13:3-4; then perhaps the bubble focus will clear and they will come to know the truth that the Fed is dead.

Liberalism featured creditism of bond traders and currency traders, as well as bankers issuing and securitizing, that is financializing, all kinds of credit, as exemplified in the Globalist Martin Hüfner report Netherlands: Another Spain in the Making?

The bond vigilantes terminated the first engine of liberalism’s creditism, the debt trade, by calling the Benchmark Interest Rate, ^TNX, higher from 2.80%, on December 11, 2013.

And the currency traders, terminated the second engine of liberalism’s creditism, the currency carry trade, by selling Major World Currencies, DBV, ie the Australian Dollar, FXA, and Emerging Market Currencies, CEW, ie the Brazilian Real, BZF, and buying a greatly rundown Japanese Yen, FXY.

Liberalism featured inflationism of nations and their banks

The bond vigilantes in calling the Benchmark Interest Rate, ^TNX, higher from 2.8%, on December 11, 2013, terminated the Milton Friedman Free To Choose Floating Currency Regime; and terminated liberalism’s system of sovereignty and seigniorage, that supported nation investment and created great wealth in financial organizations such as life insurance companies ie Prudential, PUK, and automobile producers ie Ford, F, and pharmaceutical companies ie Johnson & Johnson, JNJ.

The democratic nation state system of governance and the banker regime of investment are gone forever. Nations, EFA, such as South Korea, EWY, and banks, IXG, such as, SHG, are whitewashed tombs existing on the landscape of liberalism’s bygone era. Having been the global growth model, as well as the global industrial production model of liberalism, this great export nation’s trade seigniorage and investment seigniorage was destroyed by the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013.

With debt deflation strongly underway, the bond vigilantes have ended the Fed, and its monetary authority. Inasmuch as the Fed’s life flow, that is fiat money is dead; and its fruit, that is fiat wealth is dead; the Fed must be dead as well. The bond vigilantes terminated the Fed and inflationism; both are gone forever.

The bond vigilantes in calling an Elliott Wave 3 of 3 Up in the Benchmark Rate ,^TNX, on October 23, 2013, put The Mojo, its juice, and its joy in the life’s grave. Nothing, nada, is going to bring the Creature from Jekyll Island back, as Destructionism’s Wave, that is the Interest Rate on the US Ten Year Note, $TNX, has pivoted the world from the paradigm and age of liberalism into that of authoritarianism.  ETF Daily News posts The mother of all bubbles

Liberalism featured globalism and corporatism.

The currency traders in selling currencies in competitive currency devaluation, in Major World Currencies, DBV, and also in Emerging Market Currencies, CEW, are establishing three epic changes, 1) they are terminating investment, 2) they are introducing the beast regime, and 3) they are beginning destructionism. The prophet Daniel wrote in Daniel 7:7, that when the beast and its destruction is though, the only thing remaining will be dust; this monster is going to trample every vestige of liberalism into the ground; there will be nothing, repeat nothing left.

The bond vigilantes and the currency traders are terminating all eight avenues of investment: 1) global growth investment, ie, Biotechnology, IBB, PJP, 2) global industrial production investment, ie China Industrials, CHII, 3) consumer spending investment, Food and Beverage, PBJ, Consumer Staple, KXI, 4) infrastructure investment, ie Automobiles, CARZ, Design and Build, Industrial Metal Mining, PICK, Timber Production, WOOD, and Steel Manufacturing, SLX. 5)  yield bearing investment, in sectors such as Real Estate, IYR, Industrial Office REITS, FNIO, Residential REITS, REZ, Global Real Estate, DRW, Retail REITS, ie Simon Property Group, SPG, and General Growth Properties, GGP, and Global Utilities, DBU. 6) Energy Production, XOP, 7) Nation Investment Investment, EFA, 8) Financial Institution Investment, IXG.

The destructionism of the bond vigilantes and the currency traders pivoted the world out of the paradigm and age of liberalism and into that of authoritarianism on December 11, 2013, by calling the Benchmark Interest Rate, ^TNX, higher from 2.80%, and by selling the Major World Currencies, DBV, and Emerging Market Currencies, CEW.

With the US Dollar, $USD, trading lower below 80 to 79.88, debasement of the US Dollar has reached such a point that the US Dollar no longer serves as an international reserve currency, with the result that the US Dollar Hegemonic Empire came to an end on December 11, 2013, as the bond vigilantes called the Benchmark Interest Rate, ^TNX, higher from 2.80%, and as the currency traders sold Major World  Currencies, DBV, and Emerging Market Currencies, CEW.

Regionalism is replacing globalism. As foretold in bible prophecy of Revelation 13:1-4, out of waves of sovereign insolvency, banking insolvency, and corporate insolvency, and recession in Club Med, that is Portugal, Italy, Greece and Spain, leaders will meet in summits to waive national sovereignty, and pool sovereignty regionally, to establish regional governance, underwritten by undollar customs unions, regional currencies, and by statist public private partnerships, all for regional security, stability, and sustainability. MunKee reports on the emergence of an ASEAN investment union China agreement yet another sign of ongoing decline in US dollar

Regional property rights take precedence over personal property rights. Through confiscation, personal property becomes regional property. Open Europe relates Mail Telegraph reports that a couple have been told they must leave the 60-acre estate they have farmed for 30 years so it can be flooded to boost rare bird populations, under EU regulations. Regional industrial production, and regional trade, will replace global industrial production and global growth in the paradigm and age of authoritarianism.

Wikipedia relates that the international monetary system has borne witness to two monetary hegemons: Britain and the United States. With fiat money dead as a doornail, liberalism’s life experience in monetary hegemony is over, through, finished and done; it’s been terminated by the bond vigilantes calling the Interest Rate higher from 2.48% on October 23, and from 2.80% on December 11, 2013.

The retirement of the British Sterling after 1945, terminated the vast expanse of the British empire. The retirement of the US Dollar, $USD, beginning on December 11, 2013, terminated the US Dollar Hegemonic Empire, thus ending liberalism’s twin, iron like, global empires, seen in the two legs of the prophet Daniel’s, Statue of Empires, presented in Daniel 2:25-45.

Hegemonic currencies no more. The death of fiat money, and the detritus of broken financial markets, means that the dynamos of creditism, inflationism, globalism, and corporatism are winding down. Now the singular dynamo of regionalism is winding up.

The stage is now set for the introduction of authoritarianism’s Two Feet Empire, and Ten Toed Kingdom, with its miry mixture of regional economic governance, and totalitarian collectivism, which is the same as the terrible monster of Daniel 7:7, and the beast of Revelation 13:1-4.

The destruction of fiat money, and the destruction of fiat wealth, on both October 23, 2013, and December 11, 2013, were “extinction events”. Liberalism’s investor was made extinct by the destructionism of the bond vigilantes and the currency traders. In Prometheus fashion, Jesus Christ acting at the helm of the economy of God has created Authoritarianism’s debt serf as “Sometimes to create, one must first destroy.”

Please consider visiting my Stockcharts.com Chart Site where I post twenty charts in two sections.  The first section: Ten ETFs for a margin portfolio: EUO, GLD, HDGE, HYHG, JGBS, JOBS, OFF, SLV, STPP, XVZ.  And the second section: Ten charts for one’s consideration.

1 )  Credit, AGG, failed, better said credit died, when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013; and very soon credit is going toxic to become one of two “genesis factors” of intense economic recession; the other will be derisking out of currency carry trades. Please note the massive consolidation triangle seen in the chart; prices usually fall sharply from such patterns.

2)  Junk Bonds, JUNK. Debt trade investing, such as Junk Bonds, served as one of the two engines of liberalism’s investment liquidity; the other being currency carry trade investing.

3)   EFA:BWX, The ratio reflects the ability of nation states to leverage investment value higher over sovereign debt. The ratio of the two communicates that the sovereignty and the seigniorage of democratic nation states has failed. Yes another form of credit failure, it comes largely through the bond vigilantes calling the Benchmark Rate higher from 2.48% on October 28, 2013, on the exhaustion of the world central banks to support global growth. Look for new sovereignty, that being regional governance, and new seigniorage, that being the seigniorage of diktat, to rise to provide life experience in schemes of debt servitude, such as new taxes, confiscations, and economic mandates.

4)   EZU:EU, The December 6, 2013, Mandate of the ECB’s Mario Draghi that prevents lenders from using future loans it provides to buy Treasury Debt, EU, has destroyed nation state investment in the Eurozone, EZU. Notably the ECB Mario Draghi Mandate has destroyed the ability of nation states to fund fiscal spending.

5)   FLOT,  The pursuit of yield has driven up the value of short term bonds, that is “safe money” to its zenith. The Benchmark Interest Rate, ^TNX, trading up to 2.80% on December 10, 2013, has terminated the debt trade, and is now starting to undermine the value of what has been perceived to be safe money; there be “no more safe money” anywhere. All fiat money, whether it be credit, or currencies, carries risk because there are fewer and fewer capable sovereigns to stand behind it. The trade lower in Short Term Corporate Debt, FLOT, communicates that the first of the two powers of creditism, that being the debt trade is no longer providing investment seigniorage.

6)   FXE:FXY,  The EUR/JPY topped out on December 10, 2013. Look for investors to start deleveraging out of fiat wealth. that is out of World Stocks, VT, as well as Nation Investment, EFA, and Global Financials, IXG, just as they have done in Emerging Market Stocks, EEM, and Emerging Market Financials, EMFN. on the failure of Emerging Market Bonds, EMB, and Emerging Market Currencies, CEW.  The trade lower in the EUR/JPY, communicates that the second of the two powers of creditism, that being the currency carry trade is no longer providing investment stimulus as well.

7)   JNK:LQD,  The fall lower in Junk Bonds, JNK, relative to Corporate Bonds, LQD, communicates that high yield spreads turned up from a six year low on December 10, 2013.  All forms of credit, turned bad when the Interest Rate on the US 10 Year Note, ^TNX, traded higher to 2.80%.  Bespoke Investment Group writes “When spreads are rising it indicates that investors are demanding more yield in order to take on the added risk of the issuers, while falling spreads indicate that investors are comfortable taking on the added risk.” Thus with rising spread, seen in Junk Bonds falling faster than Corporate Bonds, investors are derisking out of the stocks that have risen the most under QEternity. Derisking and deleveraging is the genesis of RiskOff, OFF, investing.

Applying Global Zirp, that is Infinity, to Treasury Debt, TLT, and Mortgage Back Bond, MBB, resulted in a crack up boom in Risk Assets Investments, ie Small Cap Pure Value Stocks, RZV,  in Global Growth Investments, ie Small Cap Industrials, PSCI, Spin Offs, CSD, Transportation, XTN, Pharmaceuticals, PJP, Small Cap Pure Growth, RZG, and Biotechnology, IBB, as well as in  Consumer Spending Investment, ie Small Cap Consumer Staples, PSCC, Small Cap Consumer Discretionary, PSCD, and Food and Beverage, PBJ. Investors are now derisking out of these.

8)   MBB,  When the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, most all forms of credit died; even the bonds at the center of QE3, their rate of decay will increase as the bond vigilantes call the Benchmark Rate, ^TNX, higher 2.48%.

9)   VT:AGG,  Fiat wealth, VT, is no longer able to leverage higher over credit, as fiat money which is defined as Aggregate Credit, AGG, together with Major World Currencies, DBV, and Emerging Market Currencies, CEW, failed on October 23, 2013, when the Benchmark Rate rose from 2.48%.

10)  VT:GLD,  The ratio communicates the power of strong hands ruling over weaker hands; fiat money passed from weak hands to the strong hands of wily investor; now gold is passing to those who desire monetary sovereignty. For the last two years, the insiders sold gold short and went long stocks; they are now exiting that trade, giving buoyancy to gold.  Investors should sell stocks and dollar cost average into the physical possession of gold bullion and silver bullion so as to preserve wealth.  On Friday December 13, 2013, the Gold ETF, and the Spot Price of Gold, $GOLD, began its rise from a double bottom that began in July, 2013. Gold is now rising from $1,238 per ounce.

5) Regionalism is the singular dynamo of authoritarianism

Please consider that now fiat wealth as well as fiat money is dead; their charts certainly suggest that this is the case. If this is true, then the banker regime, and the democratic nation state regime, that backed up the two, is dead as well. Yes, the Fed is dead. The Interventionist Monster, that is the Creature from Jekyll Island, died when the bond vigilantes called the Interest Rate higher from 2.48%. It is Jesus Christ, acting in the Economy of God, a concept presented by the Apostle Paul in Ephesians 1:10, where He fulfills, matures, and completes every age, has ended the Fed, and has terminated the paradigm and age of liberalism, all in one fell swoop, by releasing the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB.

The Sovereign Lord God did what Ron Paul could not do, He ended the Fed. While the Eccles Building is still there, the monetary authority inside is as dead as dead can be, having been overthrown by the bond vigilantes, as is seen in Benchmark Rate, ^TNX, blasting higher in an Elliott Wave 3 of 3 UP, and as is seen in the Steepner ETF, STPP, steepening.

The Apostle John wrote from prison, while living in exile on The Isle of Patmos about 90 AD, the contents of a dream given to him by angels. The Revelation Of Jesus Christ, foretells those things which must shortly come to pass, Revelation 1:1; meaning a series of events that once they begin, as they did on October 23, 2013, fall quickly into place one right after the other, liked lined dominoes falling one upon another once the first tumbles.

Richard Ebeling posts in Economic Policy Journal  It’s time to end America’s century of Central Bank mismanagement. Well, hello, Revelation Chapter 13 tells of three separate beasts, which rise in world power to sovereignly direct mankind’s activities.

There is no human action as perceived by the Austrian Economists, there is now only the action of three sovereign authorities whose intervention is far more profound than that of the US Fed. Their interventionism will not carry the inflationism of credit; rather their interventionism will transmit the destructionism of debt servitude.

The only way one can say the Fed mismanaged is if one believes that its purpose was to provide a sound money system, and a currency that doesn’t get debased.  It has been the task of Jesus Christ to work in dispensation, a concept provided by the Apostle Paul in Ephesians 1:10, to take liberalism from its roots in liberty, and move it through corporatism, creditism, and globalism, to be the defining example of debasement, so as to perfect a moral hazard prosperity, at the very zenith of the paradigm and age of liberalism.

The Austrian economists are terrified that Excess Reserves at the Fed will be drained off, enter the economy, and cause massive price inflation.

I can assure you that there are three chances of this happening: no way, no how and never. The banks do not want to take out the monster’s life blood. The Fed won’t make IOER negative; the Fed is going to integrate the Excess Reserves into the Fed; and in so doing the banks, that is all the banks, the Too Big To Fail Banks, RWW, and the Regional Banks, KRE, will be integrated into the Fed, and be one with the Fed, and be known as the government banks, or govbanks for short. This is clearly presented in Revelation 13:1-4, where all of mankind’s institutions are regionally integrated so that all be one, living in the economic and monetary policy of regional governance, experiencing unity in totalitarian collectivism schemes of debt servitude.

Jesus Christ acting in dispensation, that is the economic and political plan of God for the fulfillment, completion of every age, a concept presented by the Apostle Paul in Ephesians 1:10, released the Rider on the White Horse, seen in Revelation 6:1-2, who has a bow, yet no arrows, to effect a bloodless global coup d’état, to transfer sovereignty from nation states and their central banks to regional nannycrats and regional bodies such as the ECB. The result since October 23, 2013, is seen in the Benchmark Interest Rate, ^TNX, rising from 2.48% to 2.86%, pivoting the world out of the paradigm and age of liberalism into that of authoritarianism, causing investors to derisk out of the periphery, that is out of Indonesia, IDX, the Philippines, EPHE, Brazil, EWZ, Thailand, THD, as well as causing the distressed to protest in pitchfork demonstrations, as related below.

The Fed’s balance sheet, once expanding the money supply, is now contracting the money supply as is seen in the pile of M2 Money decreasing in amount since October 23, 2013; this as authoritarianism’s destructionism is acting now, the counterpart to liberalism’s inflationism.

When Jesus Christ matures, perfects, and completes authoritarianism, through releasing all of the Four Horsemen of the Apocalypse, seen in Revelation 6:1-8, and bringing it to its zenith through debt servitude, there will be a crushing austerity as is foretold in Daniel 7:7.

A Zimbabwe hyperinflation is coming, but not until and after Financial Apocalypse, a global credit bust and world wide financial breakdown presented in Revelation 13:1-4.

News reports document the failure of European Socialism, which the dynamo of creditism created funding of Italian Treasury debt. Italy, the very bedrock of Treasury Debt created government is coming apart at the seams, as Mike Mish Shedlock writes Italy’s “Pitchfork Protests” spread to Rome; Interior Minister warns of “Drift Into Rebellion”. Truckers, small businessmen, the unemployed, students and low-paid workers have staged four days of rallies in cities from Turin in the north to Sicily in the south in the name of the “pitchfork” movement, originally a loosely organized group of farmers from Sicily. “There are millions of us and we are growing by the hour. This government has to go,” said Danilo Calvani, a farmer who has emerged as one of the leader of the protests. Interior Minister Angelino Alfano told parliament the unrest could “lead to a spiral of rebellion against national and European institutions,” according to Antonella Cinelli of Reuters writing that Italy’s ‘pitchfork protests,’ in fourth day, spread to Rome.

Marianne Arens of WSWS reports Renzi elected Democratic Party leader as protests spread across Italy. Prime Minister Enrico Letta of the Democratic Party (PD), who is in the process of imposing the latest austerity package with the 2014 budget, is under increasing pressure within his own party. On Sunday, his challenger Matteo Renzi won the primary election for party leader with 70 percent of the vote.

The 38-year-old Renzi, who was previously mayor of Florence, has made populist criticisms of the “Brussels bureaucracy,” demanding that the European Union not be allowed to determine Italian economic policy. He is calling for an immediate reduction of the number of serving politicians and for nationwide cuts of €1.5 billion to political appointees’ salaries. His election as party leader was held in the style of an American primary election. Not only party members, but everyone could take part, provided they were aged 16 or over and paid a contribution of €2. It was more of a populist contest rather than a democratic election, since those who did not support Renzi stayed at home rather than voting for the other candidates, Gianni Cuperlo or Pippo Civati. “This is not the end of the left, but an end of a group of leaders of the left,” he said in a speech late on Sunday evening. He has been hailed by the bourgeois press as a “charismatic reformer.”

Many newspapers compared him with Tony Blair, who transformed the Labour Party in Britain with the neo-liberal “New Labour” project over a decade ago. The German financial daily Handelsblatt wrote that Renzi means “less communism, less party cadres.”

In his victory speech, Renzi demanded that “reforms” be implemented more quickly and decisively than previously. At the heart of this had to be the “mobility of the labour market,” a euphemism for the destruction of workers’ rights and immediate cuts in the state workforce. Among other things, Renzi intends to do away with the second parliamentary chamber and provincial administrations.

The Democratic Party, which emerged from the Italian Communist Party, long ago abandoned its social commitments and became an organ for the implementation of the interests of the Italian and European banks. Already under Letta and the interim party leader Guglielmo Epifani, the PD has sought to fulfil the demands of the European Union in collaboration with the centre-right camp.

Like Letta, Renzi began his political career in the Christian Democrats. Renzi’s victory against his competitor Cuperlo, who enjoyed the support of the old party leadership around Massimo D’Alema, means that the formerly Christian Democrat Marghirita faction has total control of the Democratic Party.

Renzi will now replace the former trade union head Epifani in the leadership of the PD. Epifani led the party temporarily since early this year. After the elections in February 2013, previous chairman Pierluigi Bersani resigned along with the entire party leadership, because he could not achieve a majority in parliament for a government.

Renzi represents an explicitly right-wing, pro-business course. He is on good terms with Fiat chief Sergio Marchionne and has supported his attacks on auto workers.

Liberalism’s authority is breaking down as destructionism flows through waves of recession in Italy.

New sovereign authority will emerge, as leaders meet in summits to renounce national sovereignty, and to announce regional pooled sovereignty.

The first sovereign authority that will emerge is the Sovereign System, that is the Beast presented in Revelation 13:1-4, which occupies in totalitarian collectivism in all of mankind’s activities through seven institutions, seen in the monster’s seven heads occupying in seven spheres 1) Education, 2) Finance, Commerce and Trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science, Technology, and Health Care; and which rules in regional governance in all of the world’s regions through nannycrat diktat, seen in the monster’s ten horns ruling in ten zones, replacing sovereign nations and their constitutions

This beast is rising out of the sovereign insolvency, banking insolvency. corporate insolvency, and recession of the Club Med Nations, that is the PIGS, Portugal, Italy, Greece and Spain, as this is the epicenter of authoritarianism’s destructionism.  Zero Hedge reports European Stocks slump to 2-Month lows (Biggest 2-week drop in 6 months), documenting unfolding investment chaos.

The second sovereign authority is The Sovereign, that is the political ruler of Revelation 13:5-10,

and the third sovereign authority is The Seignior, that is the monetary and economic ruler of Revelation 13:11-18.  The Sovereign, that is the New Charlemagne, being most keen, and most adept, as is seen in Daniel 8:6-8. This Ram, with his two horns, will defeat all adversity as he rises to rule the Eurozone.

An inquiring mind asks Just who might be Europe’s King? Open Europe relates Catalonia raises the stakes by unilaterally announcing independence referendum date; Spanish PM Rajoy: I guarantee this referendum won’t be held. El País El Mundo Expansión Expansión 2 La Vanguardia El Periódico ABC European Council press release Süddeutsche FT WSJ Telegraph  Catalan President Artur Mas yesterday announced that the referendum on Catalonia’s independence will take place on 9 November 2014. At a joint press conference with European Council President Herman Van Rompuy, Spanish Prime Minister Mariano Rajoy said, “I guarantee that this referendum won’t be held. It’s unconstitutional.” Van Rompuy warned, “A new independent state would, by the fact of its independence, become a third country with respect to the Union.” Spanish opposition leader Alfredo Pérez Rubalcaba was also critical of the move. “President Mas is taking Catalonia into a dead end”.

And Open Europe relates The Scotsman reports that Ruth Davidson MSP, the Conservative’s leader in the Scottish Parliament, has told MSPs that a letter from Jen Nymand Christensen, Director SG, at the European Parliament confirms that “It is unambiguous – an independent Scotland would have to negotiate entry to the European Union from the outside” and that “The opt-outs that we currently have from the euro, from Schengen would be voided, our budget rebate would no longer apply.”

And Open Europe relates that Volkskrant: Eppink Volkskrant: Eppink – in English report in comment in De Volkskrant, Dutch-Belgian MEP Derk Jan Eppink describes “The seven deadly sins of EU ‘top job’ candidates”, including “Hoping for a coalition of small countries”, “Picking a fight with one of the big three: Germany, France or the UK” and “Preaching federalism.”

An inquiring mind asks, might The Sovereign come from the UK? Ambrose Evans Pritchard writes Britain’s negotiating hand in Europe has never been as strong before. Events are moving very fast in Europe, overtaking the debate in Britain. I ask, could the Duke of York, Prince Andrew, come into the limelight carrying the Royal Flag?  As is seen in Revelation 13:1-18, out of ever increasing waves of Club Med sovereign insolvency, banking insolvency, and corporate insolvency, and economic recession in the Eurozone, three sovereigns will rise to power to provide authoritarianism’s seigniorage of diktat.

With the ECB’s Mario Draghi Mandate, the moment of truth for European Nations, EZU, from North to South, and their Banks, IRE, NBG, SAN has arrived. The seigniorage of OMT has been removed, and the nations and their banks must now rely on the traditional sovereign debt market place. One can review how well they are doing, in the combined ongoing Yahoo Finance chart of EZU, and IRE, NBG, and SAN.

Just as the Chairman’s OMT, was precedent setting bringing forth the culmination of liberalism, in like manner the Chairman’s Mandate, is precedent setting in fathering authoritarianism. Just as Milton Friedman was the father of liberalism, with his Free To Choose Script, so Mario Draghi is the father of authoritarianism, with his ECB Mandate of December 6, 2013, that prevents lenders from using future loans it provides to buy Treasury Debt, EU.

It has been God’s purpose from eternity past to make this monster, also presented in Daniel 7:7, the Two Feet and Ten Toes Global Empire, having a miry mixture of policies of diktat and schemes of debt servitude which is presented in Daniel’s Statue of Empires, Daniel 2:25-45.  This world wide empire replaces the two iron legs of the British Empire, and the US Dollar Hegemonic Empire. Most assuredly it will be a type of revived Roman Empire, in the sense that it has a world king like Charlemagne, and in the sense that it comes to rule the vast expanse of Europe, unifying all of its residents.

Wikipedia relates Charlemagne (/ˈʃɑrlɨmeɪn/; 2 April 742/747/748[1] – 28 January 814), also known as Charles the Great (German: Karl der Große;[2] Latin: Carolus or Karolus Magnus) or Charles I, was the King of the Franks from 768, the King of Italy from 774, and from 800 the first emperor in western Europe since the collapse of the Western Roman Empire three centuries earlier. The expanded Frankish state he founded is called the Carolingian Empire.

The Sovereign’s shrewd ability to work in regional framework agreements, as foretold in Daniel 8:23,  will assure a pan-European identity for all. Like Charlemagne who abandoned the gold standard, and put all of Europe on the same silver currency, The Sovereign will work with The Seignior to establish diktat money; where his word will and way, will be the law of the land, replacing all constitutional law, national law, and historic precedent. People will have common experience of debt servitude in the rule of nannycrats overseeing public private partnerships, as their manage the factors of production, and oversee economic trade, for regional security stability and sustainability.

6) Technology is emerging for the development of The Mark of the Beast

In video, Peter G Klein, Mises Institute’s Executive Director and Carl Menger Research Fellow, explains The importance of examining ideology in the development of digital currencies.

The Apostle John wrote from prison, while living in exile on The Isle of Patmos about 90 AD, the contents of a dream given to him by angels. The Revelation Of Jesus Christ, foretells those things which must shortly come to pass, these being presented in Revelation 1:1; meaning a series of events that once they begin, as they did on October 23, 2013, Jesus Christ, acting in dispensation, that is in the administration of all things economic pivoted the world from the paradigm and age of liberalism into that of authoritarianism by releasing the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB.

By God’s design, technology will trump ideology to establish a Global Fed.

Andrew Gavin Marshall, writing in GlobalReseach.ca article Forging a New World Order Under a One World Government, relates that Jeffrey Garten has written several articles calling for the creation of a global central bank, or a “global fed.”

Garten was former Dean of the Yale School of Management, former Undersecretary of Commerce for International Trade in the Clinton administration, previously served on the White House Council on International Economic Policy under the Nixon administration and on the policy planning staffs of Secretaries of State Henry Kissinger and Cyrus Vance of the Ford and Carter administrations, former Managing Director at Lehman Brothers, and is a member of the Council on Foreign Relations, CFR.

On September 23, 1998, he wrote New York Times article, Needed: A Fed For The World stating that the world “needs a global central bank,” and that, “An independent central bank with responsibility for maintaining global financial stability is the only way out. No one else can do what is needed: inject more money into the system to spur growth, reduce the sky-high debts of emerging markets, and oversee the operations of shaky financial institutions. A global central bank could provide more money to the world economy when it is rapidly losing steam.”

Following the outbreak of the current financial crisis, Garten in September 25, 2008, Financial Times article, Global Authority Can Fill Financial Vacuum called for the “establishment of a Global Monetary Authority to oversee markets that have become borderless.”

On October 25, 2008, he wrote in Newsweek article, We Need a Bank Of the World: “Leaders should begin laying the groundwork for establishing a global central bank.” He explained that, “There was a time when the U.S. Federal Reserve played this role [as governing financial authority of the world], as the prime financial institution of the world’s most powerful economy, overseeing the one global currency. But with the growth of capital markets, the rise of currencies like the euro and the emergence of powerful players such as China, the shift of wealth to Asia and the Persian Gulf and, of course, the deep-seated problems in the American economy itself, the Fed no longer has the capability to lead single-handedly.”

The Apostle John writes of a world-wide governing financial authority presenting The Mark of the Beast, a term which comes from the Greek word charagma, and means “etching in”, or “tattoo upon”, or “stamp”, or “badge of servitude”; it becomes the universal, contactless, digital currency which enables one to conduct economic activity, and which authorizes one to receive economic benefits.

The Mark will be based upon “freely publishing the payment address and making it available to users of an internet portal or search engine.” This web based, digital type of payment network, will make it faster, easier, safer for money to change hands, for example, one need not stand in line to make a payment, nor enter a PIN, nor submit to high processing fees; it will even enable consumer to consumer payments. The cashless payment system, controlled by a global financial institution, serves as the basis for the commerce foundation of the 666 Credit System held forth in Revelation 13:16-18, that the Seignior of Revelation 13:11-18, and the Sovereign of Revelation 13:5-10, will mandate as part of a global digital currency system, and that will be required of all in order to conduct commerce.

MarketWatch reports JPMorgan has applied for a patent for a digital-payment network that would allow for anonymous payments like the virtual currency bitcoin, according to a patent application dated Nov. 28. The application was first highlighted by Let’s Talk Bitcoin . “Embodiments of the invention include a method and system for conducting financial transactions over a payment network,” the application said. “The method further includes freely publishing the payment address and making it available to users of an internet portal or search engine.” A J.P. Morgan media contact didn’t immediately respond to an emailed request for comment.

JPMorgan is developing the ultimate digital currency. Just as Monsanto controls the global food chain via the control of seeds, JP Morgan will control the monetary seed and the distribution system of the Global Fed digital money system. And possessing a patent will enable JPMorgan to stifle development of services relating to other digital currencies.

Dr. Worden of The Worden Report writes Two sizes fit all: America’s two party system stranglehold   If the American political order has indeed been deteriorating and disintegrating, its artificial and self-perpetuating parchment walls might be too rigid to allow the vacuum to be filled by anything less than whatever would naturally fill the power-void in a complete collapse. The two major political parties, jealously guarding their joint structural advantages, have doubtlessly been all too vigilant in buttressing the very walls that keep real reform, real change, from happening at the expense of the vested interests. As a result, the electorate may be convinced that it is not possible to venture outside of the political realities of the two major parties that stultify movement. If a majority of Americans want a third party, they would have to apply popular political pressure to the two major parties themselves to level the playing field. A huge mass of dispersed political energy would be necessary, however, given the tyranny of the status quo. Indeed, such a feat might require going against the natural laws of power in human affairs. If so, the already-hardened arteries will eventually result to the death of the “perpetual union.” Sadly, the determinism is utterly contrived rather than set by the fates.

All things are of God, 2 Corinthians 5:17-18, and that God determined the times and places in which one would live, Acts 17:26, and that He chose some to believe in Christ and placed these in the honey-be of His love, Ephesians 1:5-6, while He assigned the others to disbelief.

George Orwell wrote “The real division is not between conservatives and revolutionaries, but between authoritarians and libertarians.”

I extend that concept to write, the real division is between those of fiat, having life experience out of human philosophy or religion, and the elect of God, who live and move and have their being out of Him.

All be spiritual beings, who make decisions based upon the movement of the Spirit of Iniquity, or based on the movement of the Spirit of Righteousness.

And all be economists. Economics is synonymous with ethics, as when one says he has economic regard on an issue, he is saying he has ethical regard on the issue. Every person acts in dispensation, that is in household administration of things civil, monetary and political, and hence economic action come from one’s convictions in philosophy or religion. Thus economics is defined as the quality and type of ethical experience present between a person, and another or others, corporations and the state, that is government. One’s economics will either be in iniquity or in righteousness.

Since October 23, 2013, when Jesus Christ released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, the natural laws of power in human affairs, is destructionism, resulting in devolution, deterioration, disintegration, and death; the only viable and rewarding option is to have life in Christ, and let the world die its fated doom.

Global Financials, IXG, -2.1%, led Nation Investment EFA, -2.0%, and World Stocks, VT, -1.7%, lower, for the second week, turning the stock market from a bull market to a bear market, as the bond vigilantes continued calling the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.86%, and continued steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, and as currency traders sold some currency carry trades such as the GBP/JPY, causing investors to derisk and deleveraged out of investments.

Other causes of investment derisking and deleveraging are growing awareness of the ECB’s Mario Draghi Mandate that prevents lenders from using future loans it provides to buy sovereign debt, and the tremendous chaos that is coming as EU nation states simply will not find funding for their fiscal spending, and awareness that Chinese Banks, not the PBOC, will bear lending losses.  The December 6, 2013, Mandate of Mario Draghi is powering up the singular dynamo of regionalism for the purpose of regional stability, regional security, and regional sustainability. While purposed for economic growth, the ECB Mario Draghi Mandate that prevents lenders from using future loans the ECB provides to buy Treasury Debt, EU, has destroyed nation state investment, EFA, specifically in the Eurozone, EZU, that is investment in Portugal, Italy, EWI, Ireland, IRE, Greece, GREK, and Spain, EWP, has destroyed Global Financial Investment, IXG, and European Financial Institution Investment, EUFN, such as in Ireland’s bank IRE, Greece’s bank NBG, and Spain’s bank, SAN.

Andrew Gavin Marshall of Occupy.com posts in Washington Blog, Global Power Project: The Group of Thirty, Architects of Austerity. In a 2012 interview with Der Spiegel, Draghi noted that European governments will have to “transfer part of their sovereignty to the European level” and recommended that the European Commission be given the supranational authority to have a direct say in the budgets of E.U. nations, adding that “a lot of governments have yet to realize that they lost their national sovereignty a long time ago.” He further explained, incredibly, that since those governments let their debts pile up they must now rely on “the goodwill of the financial markets.”

The ECB Chairman, Mario Draghi’s December 6, 2013 Mandate has commenced the destruction of fiat wealth, that is Stock Wealth, VT, and will create a global economic recession, and is the “genesis factor” of a soon coming global credit bust and financial system breakdown, that being Financial Apocalypse, as foretold in Bible prophecy of Revelation 13:3-4.

7) … Summary of financial market trading for the week ending Friday December 13, 2013

Global Financials, IXG, traded 2.1% lower, leading Nation Investment, EFA, 2.0, lower, and World Stock, VT, 1.7%, lower, as the bond vigilantes, continued calling the Interest Rate Higher on the US Sovereign Debt, ^TNX, to 2.86%, as concerns mounted over the ECB’s Mario Draghi monetary policy Mandate, announced the week ending December 6, 2013, coming via Bloomberg report, Italy’s Bonds drop with Spain’s on concern ECB to limit support, that prevents lenders from using future loans it provides to buy sovereign debt, and as concerns arose that Chinese Banks, not the Chinese government, must bear lending losses.  

Global Financials, IXG, -2.1%; financials trading lower included:

India Earnings, EPI -4.1%

China Financials, CHIX -4.8

Australia Dividends, AUSE, -3.2

Emerging Market Financials EMFN -2.8

European Financials, EUFN -2.5

Nation Investment, EFA, -2.0%; nations trading lower included:

Philippines, EPHE -6.2%

India Small Caps, SCIN -5.0

India, INP -4.8

Australia, EWA -4.1

New Zealand, KROO -3.5

Thailand, THD -3.1

Vietnam, VNM -3.1

Indonesia, -3.1

Netherlands, EWN, -2.9; The Netherlands, EWN, was a Euro Yen currency carry trade darling; now investors consider it to be a dog and are selling it strongly. The sweet spot in life under liberalism was experiencing the liberality of the world central bankers monetary authority, and getting leveraged up, on debt trades and currency carry trades, and experiencing economic life in a socialist economy.

China, YAO -2.8

Indonesia, IDX -3.1

China Small Caps, ECNS -2.5

The UK, EWU -2.5

Sweden, EWD -2.5

The Eurozone, EZU -2.5

Emerging Markets, EEM -2.5

World Stocks, VT, -1.7%; sectors trading lower included:

Solar Energy, TAN, -6.0%

Rare Earth Miners,REMX, -5.1

Spin Offs, CSD -4.8

Small Caps Consumer Staples, PSCC -3.5; disinvestment is coming out the defensive sector at a fast clip as the world pivots into authoritarianism.

Pharmaceuticals, PJP -3.1

Medical Devices, IHI -3.0

Biotechnology, IBB -2.9

Industrial Miners, PICK -2.9

Health Care Providers, IHF -2.8; once again, the concept is that as the world pivots, strong, very strong derisking and deleveraging is coming out of those sectors classified as defensive.

Food and Beverage, PBJ -2.8

Networking, IGN -2.6

China Industrials, CHII -2.5

Yield Bearing Investment sectors trading lower included:

Chinese Real Estate, TAO -3.5%

Commercial Office REITS, FNIO -3.1

Global Real Estate, DRW -2.5

Residential REITS, REZ -2.5

Utilities, XLU -2.5

Open Europe published The First English Translation Draft Of The German Grand Coalition Agreement. The draft agreement states that the way out of the eurozone crisis is to “combine structural reforms and a strict, sustained continuation of budget consolidation.” The coalition will also be committed “to ensuring that the euro countries agree binding, enforceable and democratically legitimised contractual reform agreements at the European level.”

And Open Europe reports Eurozone Reform Contracts Take Shape, And They Include Fiscal Transfers.

These news reports suggests that regional framework agreements, that is policies of diktat in regional governance, based upon regional fiscal sovereignty, and other schemes of debt servitude in totalitarian collectivism, are the way forward in Europe.

The ECB’s Mario Draghi monetary policy Mandate, announced the week ending December 6, 2013, coming via Bloomberg report, Italy’s Bonds drop with Spain’s on concern ECB to limit support, is  destabilizing government debt markets; with OMT funding of EU Treasury Debt gone, and EU governments unable to find funding for fiscal spending, the EU is going to see sovereign insolvency, banking insolvency, and corporate insolvency on an overwhelming scale.

Out of chaos, there is coming a profound change in the nature of government and moneyness. Regional governance, not democratic nation states, will emerge as leaders meet in summits to renounce national sovereignty, and announce regional pooled sovereignty. Regional nannycrats, not banks and financial markets, will provide seigniorage, that is moneyness.  Diktat policies of regional governance, and fiscal and debt servitude schemes of totalitarian collectivism, will provide economic life in the EU.

Open Europe news reports FT  WSJ  FAZ  FAZ 2  Süddeutsche  Bild  Welt  Welt 2  Guardian: Posener clearly evidence that the beast regime of regional governance and totalitarian collectivism, with its seven heads occupying in each of mankind’s seven institutions, and its ten horns ruling in the world’s ten regional zones, presented in Revelation 13:1-4, is rising from sovereign, banking and corporate insolvency, and is making landfall in the Eurozone, occupying with feet of a bear in EU banking supervision in Frankfurt Germany; with mouth of a lion in NATO headquarters in Brussels; and camouflage of a leopard in ongoing technocratic governance in Greece as well as in ECB banking supervision from Berlin, and in nannycrat fiscal rule from Brussels enforcing budget rules demanding more austerity in Spain and Italy.

The World Pivots From Liberalism Into Authoritarianism On The Death Of Fiat Wealth As Bond Vigilantes Call The Interest Rate On The US Ten Year Note Higher To 2.84%

December 8, 2013

Financial Market Report for the week ending December 6, 2013

(One might find this blog post, presented in Google Documents here — to be more readable.)

1) The previous week, that is on Friday November 29, 2013, the world attained peak experience in liberalism, both as an age and a paradigm.  Liberalism’s peak prosperity was achieved on both the pursuit of yield, Junk Bonds, JNK, Ultra Junk Bonds, UJB, Leveraged Buyouts, PSP, and Distressed Investments, FAGIX, as well as investment in currency carry trade investment, specifically, the Euro Yen Currency Carry Trade, that is EUR/JPY, which closed at 139.27.

The week’s parabolic rise in the Euro Yen Currency Carry Trade, EUR/JPY gave seigniorage, that is moneyness to Eurozone Stocks, EZU, traded up 1.0%, while Eurozone Credit, EU, traded down 1.2%, producing peak fiat wealth in these stocks, as is seen in the chart of EZU:EU, with the following  industry leading companies coming in at the top of the list: Communications Equipment, ALU, Cement, CRH, Pharmaceuticals, SNY, Drug Delivery, ELN, Diagnostic Substances, TRIB, Data Storage Devices, STX, Research Services, QGEN, Printing Services, VPRT, Electronic Equipment, PHG, Life Insurance, ING, Publishing, ENL, Software, SAP, and Industrial Machinery, SI. 

The buy of the Euro, FXE, 0.2%, to close higher at 134.33, and the sell of the Yen, FXY, 1.1% to close strongly lower at 95.34, drove Eurozone Stocks, EZU, 1.0%, higher, with Germany, EWG, 2.1%, Ireland, EIRL, 0.7%, Netherlands, EWN, 0.7%, as well as Spain, EWP, 1.6%, on SAN, 1.9%, Greece, GREK, 2.5% on NBG, 8.8% , with European Financials, EUFN, 2.0%, but Finland, EFNL, 0.4% lower. Of note, Both Greece, GREK, and the National Bank of Greece, NBG, have risen 40%, in the last six months, on a swelling Euro Yen Currency Carry Trade, which has driven the Euro to 134.33.

Shaun Richard of Mindful Money asks Whatever happened to the promises of Grecovery? He presents a situation which is getting worse more slowly rather than any proper recovery. Greece is mired in ongoing recession where the Troika is applying the austerity noose in a gulag of debt servitude. He points out the the resources for fiscal spending come entirely through seigniorage aid from the the Troika.   

FX Street reported EURJPY Peaks At A 5 And 1/2 Year High At 139.27. Investing.com charts showed the weekly chart of the EUR/USD at strong resistance at 136.11. And the Invensting.com chart showed the weekly chart of the USD/JPY at strong resistance at 102.33. The EURJPY rose giving seigniorage to fiat wealth, that is to Global Financials, IXG, World Stocks, VT, and Nation Investment, EFA.

Global Financials, IXG, rose 0.3% to a new rally high to produce the zenith of the US Dollar Hegemonic Empire. Financials trading higher included India Earnings, EPI, European Financials, EUFN, on a higher UBS, CS, SAN, IRE, NBG, DB, as well as Emerging Market Financials, EMFN, and peaking Too Big To Fail Banks, RWW, Regional Banks, KRE, and Chinese Financials, CHIX.  Financials trading lower included Japan’s SMFG, and MFG, as well as Brazil Financials, BRAF.

World Stocks, VT, rose 0.1% to a new rally high; sectors trading to new highs included CHII, FDN, PNQI, PSCI, RZG, QQQ, RZV, PKB, SEA, IBB, XRT, PJP, XTN, PPA, and FXR. Trading was quite strong in M, S, MU, DAL, and TXN.  Sectors recovering from a strong sell included BJK, PICK, SLX, CARZ, EMIF; sectors trading lower included TAN. Call Write Bonds, CWB, the investor’s weather vane, rose 0.3% to a new rally high.

Nation Investment, EFA, rose 0.1%, and Emerging Markets, EEM, 0.7%; but both remained below their October 23, 2013 highs. China, YAO, rose 1.9%, China Small Caps, ECNS, 1.0%, Eurozone, EZU, 1.0%, and US Stocks, VTI, 0.1%, all to new rally highs. The Nikkei, NKY, fell 0.3% from its rally high. Asia Excluding Japan, EPP, fell 0.9%, continuing its fall lower from its October 23, 2013, evening star chart pattern high.

Gordon T Long relates in Safehaven.com Euro Pressure Going Critical posts chart showing the Current Account Balances of the Peripheral BRICS, where Brazil, EWZ, Peru, EPU, Chile, ECH, and India, INP, having terrifically red current account balances; with the consequence that the first three nations have born the greatest disinvestment since the bond vigilantes stimulated the currency traders to commence competitive currency devaluation on those countries with large current account deficits.  

Debt deflation is destroying national sovereignty. Out of sovereign insolvency, banking insolvency and corporate insolvency, the beast regime, and its regional sovereignty of regional governance, and  its economic life of totalitarian collectivism, will rule in the world’s ten regions and occupy in mankind’s seven institutions, as foretold in Bible prophecy of Revelation 13:1-4, replacing the banker regime ruling in democratic nation state governance and economic life experience of crony capitalism, European socialism, Greek socialism and communism.

Under liberalism, globalism, commercialism, socialism, and corporatism were the dynamos of economic action. Arnold King writes in EconLibOrg Corporatism is a state of being “Corporatism satisfies a desire for security. People want security of consumption, security of jobs, and security of their economic status. Corporatism replaces the decentralized competition of the market with political control over the economy. The forms of protection people obtain include occupational license restrictions, labor unions, and entitlement programs.” Comments on Arnold King’s article And yet they stay in Yuma, provide insight that liberalism was an age of growing entitlement.

The singular dynamo of regionalism, coming through regional framework agreements, which provide regional security, regional stability, and regional sustainability, is replacing globalism, commercialism, socialism, communism, and corporatism as the driver of economic action, on the failure of money growth, that is failure of both credit growth, and currency growth.

There has been a death, both credit, and currencies died on October 23, 2013, when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.  Regional intervention is replacing federal intervention as is seen in the Ambrose Evans Pritchard report Hinkley Point deal under threat from EU. European Commission close to concluding that deal between Government and energy firms on Hinkley Point breaches EU state aid rules.

Authoritarianism is rising to replace liberalism.

With the rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48 % on October 23, 2013, Jesus Christ opened the First Seal on The Scroll Of End Time Events, and released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, who rule in authoritarianism with regional governance policies of diktat. and totalitarian collectivism schemes of debt servitude. Nannycrat rule will make claim of personal property, establishing regional property and regional property rights, as superior to personal property rights, and regional economic activity superior to national economic activity.

Fiat Money, traded as follows. Aggregate Credit, AGG, rose 0.2%, but of note, Mortgage Backed Bonds, MBB, fell 0.1%. Major World Currencies, DBV, fell 0.4%, and Emerging Market Currencies, CEW, fell 0.4%.

Fiat Money, that is Aggregate Credit, AGG, as well as Major World Currencies, DBV, and Emerging Market Currencies, CEW, died on October 23, 2013, when the bond vigilantes called the Interest Rate on the US Note, ^TNX, higher from 2.48%.

Fiat money is being replace by diktat money as the world pivots from the age and paradigm of liberalism. into the age and paradigm of authoritarianism, where one has life experience as a debt serf living under diktat, noosed in austerity.     

The Fed, the primary printer of fiat money, be dead; at least in terms of continuing on in terms of interventionism with programs that provide effective monetary stimulus.

The bond vigilantes came into control of the Interest Rate on the US Ten Year Note, ^TNX, on October 23, 2013, and as a result the US Federal Reserve’s monetary policies, as well as those of the other world central banks no longer support credit growth.

Investors no longer trust that the banker’s monetary policies will support global growth and global trade. Global GDP, and national GDP, will be falling on the failure of fiat money, that is on the failure of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW. The Creature From Jekyll Island is being replaced by the beast regime of regional governance and totalitarian collectivism, as foretold in bible prophecy of Revelation 13:1-4.  

Liberalism as an experience in democratic nation state policies of investment choice and banker schemes of credit is being relegated to the dustbin bin of history, as fiat money died on October 23, 2013, when the bond vigilantes called the Interest Rate on the US Ten Year Note higher from 2.48%.  

Monetary deflation, coming on the exhaustion of the world central banks’ monetary authority, is seen the pile of M2 Money, trading lower, and is in the big five global industrial production sectors of Design, Build and Construct, Timber Production, Industrial Mining, Steel Production, and Automobile Production, trading lower since October 23, 2013. This week these traded as follows: Design, Build and Construct, FLM, rose 1.4%, Timber Production, WOOD, 0.7%, Industrial Mining, PICK, fell 0.8%, Steel, SLX, rose, 1.0%, Automobiles, CARZ, rose 0.9%; those rising, did so on rising currency carry trade investing.

The world central banks’ monetary policies have crossed the rubicon of sound monetary policy, and have made “money good” investments bad. Lack of trust in the world central banks’ monetary policies has caused disinvestment out of yield bearing investments. With Electric Utilities, XLU, trading lower the week ending November 29, 2013, Dividend Growth, VIG, is now exhausted and is trading lower.

This week yield bearing sectors traded as follows:  Electric XLU, down 1.8%, North American Energy Partnerships, EMLP, 0.8%, Industrial Office REITS, FNIO, 1.2% and Residential REITS, REZ, 1.2%.

The bursting of the fiat money bubble, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, is resulting in a new form of money, that being diktat money, where the components of M2 Money, such as savings accounts, will be placed under capital controls, as well as under transfer restrictions, and the factors of production, commercial businesses as well as trading organizations, will be overseen in regional interventionism by regional monetary and economic nannycrats, working in statist public private partnerships and workgroups, to establish regional security, regional stability, and regional sustainability in response to economic recession, monetary deflation, and credit implosion. The authority for regional interventionism will come from nation leaders who in response to sovereign insolvency, banking insolvency and corporate insolvency meet in summits to renounce national sovereignty and announce regional pooled sovereignty. GoldCore reports      Bail-ins, deposit confiscation confirmed at ‘Future of Banking in Europe’ conference.  

Ludwig Von Mises, wrote of the new order in Planned Chaos, “There are two different patterns for the realization of socialism. The one pattern, we may call it the Marxian or Russian pattern, is purely bureaucratic. All economic enterprises are departments of the government just as the administration of the army and the navy or the postal system.” …  “The second pattern,we may call it the German or Zwangswirtschaft system, differs from the first one in that it, seemingly and nominally, maintains private ownership of the means of production, entrepreneurship, and market exchange.

The US Dollar, $USD, UUP, has been rising since the call higher of the Interest Rate on the US Ten Year Note, ^TNX,  and the sell of both US Government Bonds, and Mortgage Backed Bonds, MBB, on October 23, 2013. The US Dollar, $USD, UUP, traded 0.1% lower the week ending November 29, 2013, and Gold, GLD, and Silver, SLV, both traded  0.6% higher on the week.

2) European Financials and Brazil Financials, together with global industrial production sectors, lead nation investment and world stock investment lower, on the ongoing death of fiat money, as the bond vigilantes continue calling the Interest Rate on the US Ten Year Note, TNX, higher from 2.74%.

On Monday, December 2, 2013,  The European Financials, EUFN, and Brazil Financials, BRAF, led Global Financial Institutions, IXG, Nation Investment, EFA, and World Stocks, VT, lower on the ongoing death of fiat money, that is the continuing failure of Credit, AGG, and the continuing failure of Major World Currencies, such as the Australian Dollar, FXA, the Euro, FXE, and the Japanese Yen, FXY, as well as on the failure of Emerging Market Currencies, CEW, such as the Brazilian Real, BZF.    

This financial market place activity is the manifestation of the bible prophecy of Revelation 13:1-4, where it is foretold that the beast regime of regional governance, as seen in ten horns, symbolic of rule, and totalitarian collectivism, as seen in seven heads, symbolic of mankind’s institutions, rise from waves of sovereign insolvency, banking insolvency, and corporate insolvency, of the Mediterranean Sea nations , that is from the PIGS, Portugal, Italy Greece, and Spain, and their banks, such as the National Bank of Greece, NBG, and Banco Santander, SAN.    

The EUR/JPY closed higher at 139.60, with the Euro, FXE, and the Yen, FXY, both closing lower, but the Yen, FXY, fell more than the Euro, FXE, with Forex Talk posting EURJPY breaks above 2009 high, keeping an eye on 141.00. Yet the higher Euro Yen Currency Carry Trade was unable to leverage stocks higher, as fiat money continued to die, as the Interest Rate on the US Ten Year Note,  ^TNX, rose to 2.80%.  Fiat Money, consisting of Credit, AGG, and every currency in the entire world, excluding the US Dollar, traded lower. The rise of the Bellwether Interest Rate, rising to 2.80%  stirred-up death in Credit, AGG, and all currencies, except the Dollar, $USD, and propelled World Stocks, VT, lower.

All elements of liberalism’s fiat prosperity perished: Credit, AGG, Currencies, such as the Euro, FXE, Brazilian Real, BZF, and Stocks, VT, all traded lower; these are now dead financial investments. One cannot have life experience in a dead thing. Liberalism as an age, paradigm and life experience, is dead; and authoritarianism is rising as an age and paradigm to provide an economic life of austerity, coming through policies of regional government and in schemes of debt servitude.     

The US Dollar, $USD, UUP, traded 0.3% higher to close at 80.93. It no longer serves as the world’s reserve currency, as on October 23, 2013, the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%. The Milton Friedman Free to Choose Floating Currency system which came on line in 1971 when the US went off the gold standard, has died; it is gone forever as the foundation to support global growth and global trade, as currencies are no longer rising, they are sinking in competitive currency devaluation, at the hands of the currency traders, as they continue their war of debt deflation against the world central banks.

The trade lower in Credit, AGG, reflects that credit is no longer growing, and the trade lower in Major World Currencies, such as the Australian Dollar, FXA, as well as the trade lower in Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, communicates that money is no longer effectively being printed by the world central banks. Credit deflation is underway, and monetary deflation, is underway; and today the value of fiat wealth, that being World Stocks, VT, finally traded lower.  Prosperity as life’s experience is over, though, finished and done. The new normal is a life of austerity.

Precious metals, that is Gold, GLD, and Silver, SLV, traded lower, as these often trade inversely of the US Dollar, as was the case today with the US Dollar, $USD, rising. Spot Gold, $GOLD, traded lower to $1210, which is just under the cost of production for many companies.

The world passed through peak prosperity the week ending November 29, 2013, on the rise of the Interest Rate on the US Ten Year Note, ^TNX, from 2.74% on December 2, 2013.

Fiat money, that is Credit, AGG, and Major World Currencies, such as the Australian Dollar, FXA, and the Euro, FXE, and the Japanese Yen, YEN. as well as Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, is dead, and the world central banks that that print the money, such as the US Fed be dead, with the result that dynamos of globalism and corporatism that fueled economic systems of crony capitalism, European Socialism, and Greek Socialism, be dead as well. One hundred years of US Federal Reserve central bank interventionism, ended December 2, 2013, terminating 100 years of rule by the Creature from Jekyll Island.  Now the beast regime of regional governance and totalitarian collectivism is rising in its place. Worldwide economic recession can be the only outcome of the failure of fiat money.    

Democratic nation states are losing their financial sovereignty, and as is the case in Greece which lost its fiscal sovereignty in May 2010, with Greek Bailout I,  as the Troika and the Greek Government are currently not meeting to discuss further fiscal aid, and cannot provide traditional seigniorage.   

In Europe, Italy, EWI, Spain, EWP, Ireland, EIRL, traded lower, largely on a trade lower in the European Financial Institutions, EUFN. There reaches a point, such as is the case on December 2, 2013, when insolvent sovereigns and insolvent financial institutions, despite being supported by a common currency central bank, in this case the ECB, can no longer provide investment seigniorage.  

As a result, stock values for the Eurozone, EZU, traded lower. A case in point is that of Ireland’s Ingersoll Rand, IR, falling 22%, wiping out five months of investment gains, despite a rising EURJPY.

An entire age, and an entire paradigm, than being liberalism, can no longer fulfill its purpose, that is to credibly support investment choice. Out of economic chaos, a new age, that being authoritarianism is emerging; its purpose is to provide diktat for regional security, stability, and sustainability. 

The rise in the Interest Rate on the US Ten Year Note, ^TNX, first from 2.48% on October 1, 2013, and then from 2.74%, on December 2, 2013, as well as the steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, rising, comes at the hands of the bond vigilantes, who with authority called that world central banks’ monetary policies have crossed the rubicon of sound monetary policy, and have made “money good” investments bad, and are no longer able to support either global industrial production or global growth and global trade.

The age of global trade, that was characterized by long B2B supply chains, with sourcing in the Emerging Markets, EEM, such as Thailand, THD, and Brazil, EWZ, and manufacturing in Developed Market, South Korea, EWY, and with investment flowing from massive rivers of credit investing and currency carry trade investing, that commenced after the 2008 financial system crash, came to an end on Monday, December 2, 2013, as bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX,  higher to 2.84%.  The US Dollar Hegemonic Empire, synonymous with the banker regime, and global trade, is history, gone forever, on the failure of fiat money.   

Liberalism was an age and a paradigm whose objective was to make investors wealthy via the seigniorage of a banker regime consisting of a speculative leveraged investment community and a US Dollar Hegemonic Empire, through the process of globalism, based upon the sovereignty of democratic nation states, founded upon the most extreme financialization of equity and debt as is possible, as has been foretold in bible prophecy of the Statue of Empires in Daniel 2:25-45.  It was God’s desire from eternity past to create two massive legs of iron wealth, these being the British Empire, and the US Dollar Hegemonic Empire, immediately before He brings forth the Two Feet Empire, with its miry mixture of policies of regional economic diktat in the world’s ten regional zones, and totalitarian collectivism in mankind’s seven human institutions.

The beast regime is synonymous with the Two Feet Kingdom seen in Daniel’s Statue of Empires, this two footed, and ten toed monster, is described as in Daniel 7:7, as “beastly, dreadful and terrible, exceedingly strong; it has huge iron teeth; it’s devouring, breaking in pieces, and tramples the residue with its feet. It’s different from all the beasts that were before it, as it has ten horns”. This fourth beast is very much a revived Roman Empire, as Elevation Ministries posts The Last In A Lineage Of Four Beasts: the Roman Empire, the Greek Empire, the Merdo Persian Empire, and the Babylonian Empire.

There have been other golden ages of trade, one was at the zenith of the sovereignty of the British Empire, as the WorldEconomy.com relates the peak sovereignty and seigniorage of the British Empire;   “Between1820 and 1913, British per capita income grew faster than at any time in the past, three times as fast as in 1700–1820.

“The United Kingdom already had an important role in international finance, thanks to the soundness of its public credit and monetary system, the size of its capital market and public debt, and the maintenance of a gold standard. The existence of the empire created a system of property rights which appeared to be as securely protected as those available to investors in British securities. It was a wealthy country operating close to the frontiers of technology, so its rentiers were attracted to foreign investment even when the extra margin of profit was small. From the 1870s onward, there was a massive outflow of British capital for overseas investment. The United Kingdom directed half its savings abroad. French, German and Dutch investment was also substantial … By 1950 colonialism was in an advanced state of disintegration. With one or two exceptions, the exit from empire was more or less complete by the 1960s. The British imperial order was finished, as were those of Belgium, France, the Netherlands and Japan. In the West, the United States had emerged as the hegemonial power competing with the Soviet bloc for leverage in the newly independent countries of Asia and Africa”.             

Silver, SLV, Gold, GLD, and Base Metals, DBB, traded sharply lower.Agricultural Commodities, RJA, traded lower, Oil, USO, traded higher. Spot Gold, $GOLD, closed 2.6% lower at $1,201, on the rise of the US Dollar, $USD, to close at 80.93.     

Liberalism’s bull market turned to a bear market.  On Monday December 2, 2013, liberalism’s greatest ever fiat wealth rally came to an end, as bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, to 2.80%, continuing a trend that commenced on October 23, 2013, when they called the Benchmark Rate higher from 2.48%.  Riskless investing, that came through the money printing operations of the US Federal Reserve and other world central banks, finally came to an end on the death of fiat money, that is as Credit, AGG, and Major World Currencies, such as the Australian Dollar, FXA, the Euro, FXE, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, continued lower in value.

The big five global industrial production sectors, which turned lower on October 23, 2013, when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, trade lower: Industrial Miners, PICK, -1.0, Steel Manufacturers, SLX, -1.0, Design, Build, and Construct, FLM, -0.9, Automobiles, CARZ, -0.9, Wood Production, WOOD, -0.3.  

The world entered into Kondratieff Winter, that is the final phase of the Business Cycle, on December 2, 2013, as Nation Investment, EFA, -0.8%, World Stocks, VT, -0.7 Global Financial Institutions, IXG, -0.5, being led so by the European Financials, EUFN, and the Brazil Financials, BRAF, on the failure of fiat money. The banker regime and nation state democracy is literally disintegrating on the failure of fiat money. The beast regime and regional governance is rising out of waves of sovereign insolvency, banking insolvency, and corporate insolvency, as foretold in Revelation 13:1-4; it will provide regional governance and diktat money for one’s life experience.   

The greatest of all risk assets, that being Small Cap Pure Growth, RZG, -2.0, such as ROLL,  CVR,  and JBT.  Liberalism’s credit trade investing and currency carry trade investing life experience that generated moral hazard based fiat wealth prosperity is over, through, finished and done; thereby putting an end to liberalism as both an age and a paradigm, all on the call by the bond vigilantes of the Benchmark Interest Rate, ^TNX, continually higher from October 23, 2013, on the exhaustion of the world central banks’ monetary authority.

Of note Large Cap Growth, JKE, global industrial automation providers and machine tool manufacturers, Rockwell Automation, ROK, and Nidec NJ, traded parabolically lower, (but Kennametal, KMT, traded higher) communicating the failure of global growth and global trade.

The failure of global growth and global trade is seen in the ongoing combined Yahoo Finance chart of the fall of the Semiconductor Equipment Manufacturers, AMAT, KLAC, LRCX, TER, and ASML, and the rise of the Interest Rate on the US Ten Year Note, ^TNX. Truly, the world central banks’ easings, have crossed the rubicon of sound monetary policy, and have made “money good” investments bad.   

The trade lower in fiat wealth, World Stocks, VT, on December 2, 2013, coming as a result of the bond vigilantes calling the Benchmark Interest Rate, ^TNX, higher from 2.74%, pivoted the world out of liberalism and into authoritarianism. One no longer has economic life in the banker regime’s policies of investment choice and schemes of credit, which provide a moral hazard based prosperity. Rather one now has economic life in the beast’s regime’s policies of diktat of regional governance and schemes of totalitarian collectivism debt servitude. Destiny is at work, fate cannot be altered; the new normal is a life experience of austerity.  

The chart of the S&P 500, $SPX, -0.3, falling from its Elliott Wave 5 high.  

Regions, EEM, -2.0, EEB, -2.0, EPP, -0.8, EZU, -0.7, NKY -0.4. VTI, -0.2.

The Brics,  Brazil EWZ, -4, EWZS, -2, BRAF, -3, of note PBR, -10 ….. Russia, RSX, -2  and ERUS, -2  … India, INP, -2, EPI, -1 …. China, YAO, -1, CHII, -1, ECNS, -2, CHIX, -1

Asia Excluding Japan, EPP, -0.8, EWA, -1.1, KROO, -1.4, EWY, -1.7, EWT, -1.5, EZU, -0.7,  EWI, -2.0,  EWP, -1.,3, EIRL, -1.0, EUFN, -0.9

US, IWM, -1.0, KRE, -0.9, with SNV, -1.1

Emerging Markets, ARGT, -3.1, TUR, -2.6, ECH, -2.5, THD, -2.4, EPHE, -2.1, EWW, -1.5

Precious Metal Mining, SIL, -6.4, GDX, -6.1; these fell lower on strong volume.

Sectors, RZG, -2.0, PSCI, -1.4, such as ROLL,  CVR,  HEES, and JBT, CHII, -1.4, RZV, -1.0, PBS,-1.0 ,RXI, -0.8, IGV, -0.8, FDN, -0.7, XRT, -0.7, with Limited Brands, LTD, -0.4.  Limited Brands is the retailer consisting of Victoria Secrets Intimate Apparel, La Senza Sexy Bras, and Bed and Bath Works.  Its Yahoo Finance Chart shows that it has risen 700% since the 2008 financial crisis.  The age of intimate expression and the age of intimate relationships, ended December 2, 2013, when the bond vigilantes called the Interest Rate higher on the US Ten Year Note to 2.80%.  One now has ever increasing intimate relationships with others in the beast regime’s regional totalitarian collectivism, where all of humanity will be knitted together in the diktat or regional governance.

Global industrial production sectors traded lower: PICK, -1.0,  SLX, -1.0,  FLM, -0.9, XME, -0.9, CARZ, -0.9,  WOOD, -0.3. Of note, Copper Mines, COPX, -2.0  

Financials, IXG, -0.5, KRE, -0.9, EUFN, -0.9, CHIX -1.2. Of note it is the European Financials that are leading World Stocks, VT, lower.  

Yield Bearing Sectors, DRW, -1.9, ROF, -2.0, FNIO, -0.9, DBU, -0.9,  PSP, -0.7, REZ, -0.6, EMLP, -0.5, and XLU, -0.5, with NEE, -0.7

Call Write Bonds, CWB, the Investor’s Weathervane, -0.6

Credit AGG, -0.6, JNK, -0.6, EMB, -1.3. TLT, -1.1. MBB, -0.5, GOVT, -0.3, FLOT, -0.04 and SHY, -0.08.

Doug Noland writing in Safe Haven reports Emerging Market Bond instability has returned.  Brazilian (real) yields closed at a multi-year high 13.27%, up 190 bps from early September lows. Other EM problem children also saw bond yields spike higher. Indonesian 10-year yields ended the week at 8.64%, up from the October low of 7.0% and not far from September highs (8.93%). Indonesian yields began the year at 5.19%. The Ukraine has become another EM worry.. After ending October at 7.16%, Russian (ruble) yields jumped this week above 7.90%. After trading down to 8.20% in late-October, Turkey’s 10-year sovereign yields this week returned to 9.60%. South Africa saw 10-year yields jump from October lows of 7.30% to above 8.10% this week.

Major World Currencies, $USD, UUP, +0.3, BZF, -0.8, FXE, -0.3. And Emerging Market Currencies, CEW, -0.5, BZF, -0.8

Interventionism is becoming not only a life experience in finance, but interventionism is increasing to occupy in all of mankind’s seven institutions as foretold in bible prophecy of Revelation 13:1-4.  On October 23, the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, and the currency traders sold the World  Major World Currencies, DBV, and Emerging Market Currencies, CEW, which terminated the banker regime, aka the Creature Jekyll Island, and birthed the beast regime of Revelation 13:1-4, and pivoted the world from a policy of investment choice and schemes of credit …  such as health care insurance choice …  to policies of diktat and schemes of debt servitude … consisting of government mandates such as Obamacare  … which is an interventionist policy of the authoritarian state, where health care corporations are given charter to operate as public private partnerships for management of people’s health care, beginning first with individual states providing Medicare payment to doctors and to state operated community health care clinics. Washington state has announced a full schedule of benefits, which in 2014, will include dental insurance for low income individuals; this new benefit compliments doctor visits, surgeries, prescriptions, all at no cost those covered by the government’s plan.

Credit deflation is accelerating in Spain as El Pais reports Household credit suffers record fall in October despite the rescue. Credit in Spain continues to show signs of weakness, year and a half after the Troika bailout. Statistics from the Bank of Spain show that household credit fell 5.2% in October to 793.940 billion euros. If we look at the evolution of the cash flow of borrowed money, the net change in assets is a decrease is 4.7%. In October, the credit borrowed to buy homes fell 4.7%, maintaining its rate of collapse, to 614.860 billion euros. Lending to businesses fell 10% in October, to 1.081 trillion euros. In both cases, the amount of money borrowed is at its lowest level since 2007.

William Peck writes in Bloomberg editorial Japan’s Secrets Bill turns journalists into terrorists. And Zero Hedge reports War on democracy: Spain and Japan move to criminalize protests.

Zero Hedge reports Venezuela plunges into darkness as President Maduro lays out socialist vision on national tv

Bloomberg reports Japan Salaries Extend slide as inflation begins to take root. Japan’s salaries extended the longest tumble since 2010, increasing pressure on household finances as inflation begins to take root. Regular wages excluding overtime and bonuses fell 0.4 percent in October from a year earlier, a 17th straight monthly decline, according to labor ministry data released today.

AFP reports Thousands of trucks block French motorways in tax protest Thousands of trucks block major motorways across France in protest at a proposed ‘eco tax’ on heavy goods traffic.

Financial Times reports CMBS issuance at highest since before the crisis. Worldwide issuance of securities backed by revenues from commercial mortgages has nearly doubled this year to the highest level since 2007 as US and European banks pile back into property lending. Issuance of commercial mortgage-backed securities has reached $92.9bn so far this year, up from $48.7bn in the same period in 2012, according to Dealogic, the data provider.

Die Welt Germany’s Gauweiler says Euro Area is like Soviet States. Euro area is comparable to socialist states a quarter of a century ago, doubts it will last, Peter Gauweiler, vice-chairman of Merkel’s CSU Bavarian sister party, says in an interview. “The more irreversible one considers a conglomerate, the faster it dissolves,” Gauweiler said. (Hat Tip to Gary of Between The Hedges)

Allison Smith writes in WSWS Britain’s poorest summonsed to court to pay council tax arrears In scenes repeated across Britain, poor residents queue up outside court buildings waiting to appear before local magistrates for being in arrears on newly imposed council taxes.

Zero Hedge What happens when this chart hits zero?  I comment that the bears have left the building; when only buyers are left and there is no more short sell covering, it is time to go short and to dollar cost average into the physical possession of gold and silver bullion.

Bloomberg reports NCR to buy Digital Insight for Web Banking. NCR Corp, NCR, acquired Digital Insight Corp. for $1.65 billion to gain software for online and mobile banking.

The WSJ reports Easy credit puts car sellers in driver’s seat. Credit conditions keep getting looser. An average credit score for new car loans calculated by Experian Automotive was 753 points as of the third quarter, down 22 points over the prior four years and only four points above the easy-money days of late 2007. Overall auto-loan balances hit an all-time high last month at $783 billion, up 15% in a year. A record 84.5% of car buyers used a loan or lease in the second quarter. I comment that subprime lender automobile lender, CACC, manifested bearish engulfing and traded 2.0% lower.

 

On Tuesday, December 3, 2013, The European Financials, EUFN, Global Financials, IXG, being at the epicenter of the death of fiat money, continued leading Nation Investment, EFA, and World Stocks, VT, lower for the second day; volatility, TVIX, VIXY, VIXM traded higher, on the death of fiat wealth

The trade lower in the European Financials, EUFN, as well as the Brazil Financials, BRF, on debt deflation, that is currency deflation, are leading the way forward in the failure of Nation Investment, EFA, in particular Eurozone Nation Investment, EZU, and Brazil, EWZ, and South Korea, EWY, a leading global trade nation, and are leading the way forward in the destruction of fiat wealth, that is World Socks in general, VT, with the global industrial production sectors Automobiles, CARZ, Design Build and Construction, FLM, Industrial Miners, PICK, Steel Production, SLX, and Timber Production, WOOD, selling off strongly.      

 Sectors trading lower included XTN, -1.7, as Regional Airlines, JBLU, ALK, ALGT, LUV , SKYW, and Major Airlines, DAL, LCC, SAVE, UAL, sold off strongly, after the first human case of H7N9 bird flu in Hong Kong fanned concern that the virus is continuing to spread beyond mainland China’s borders, IBB, -1.7, PJP, -1.3, PSCI, -1.2, SEA, -1.0, RXI, -1.0, RZG, -0.9, PBS, -0.9, and PPA, -0.9.

Global industrial production sectors trading lower included FLM, -1.1, CARZ, -1.1, such as F, and GM, PICK, -0.9,  WOOD, -0.7, and SLX, -0.1, with MT, -2.3. And yield bearing sectors trading lower included DBU, -1.4, PSP, -1.1. The strong trade lower in Global Utilities, DBU, communicates that the call higher in the Interest Rate on the US Ten Year Note by the bond vigilantes from 2.74% on December 1, 2013, terminates investment in capital intensive  debt laden Electric Utilities worldwide. A higher Benchmark Interest rate is not only destroying fiat money but fiat wealth as well, a stunning example is Huaneng Power International, HNP.      

Global financials, trading lower included IXG, -1.0; being led lower by Brazil Financials, BRAF, -2.1, and Regional Banks, KRE, -1.3 such as SNV, HBAN, STI, and RF, and Regional Banks, RWW, -1.3, and Stock Brokers, IAI, -1.2, and Regional Financials, EUFN, -1.2, led lower by Ireland’s IRE, Spain’s, SAN, and the National Bank of Greece, NBG. Eurozone Stocks, EZU, -1.3, and European Nations, Finland, EFNL, -2.5, Germany, EWG, -1.4, Italy, EWI, -1.2, Greece, GREK, -1.2, Spain, EWP, -1.0, and Ireland, EIRL, -0.  The trade lower European Financials, EUFN, is destabilizing investment in the whole spectrum of European stocks, and European nations, as is seen in the combined chart of the European Financials, EUFN, with Italy, EWI, Greece, GREK,  and Ireland, EIRL. European banking insolvency is finally destabilizing democratic nation investment in the EU.  

Liberalism’s great swell of fiat wealth, that came through investing in European Debt, EU, and though currency carry trade investing in the EUR/JPY, is falling as the bond vigilantes have called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.74%, on the exhaustion of the world central banks’ monetary authority.  Investors are derisking out of European Debt, EU, and out of Euro Yen, FXE:FXY, currency carry trade investment.  Fiat wealth, that is World Stocks, VT, is surely dead.

Under authoritarianism, sovereign authority, coming from regional framework agreements, will underwrite new monetary and economic authority, to establish regional security, regional stability, and regional sustainability. Authoritarianism’s diktat money is rising to provide life experience in austerity.        

The Global Life Insurance companies, seen in this Finviz Screener, benefited greatly from the banker regime’s QEs, LTROS, OMT, Bank of England Easings, Abenomics, and PBOC Reformation (all of which were money printing operations); but now with the bond vigilantes in control of the Benchmark Interest Rate, ^TNX, these financial investments are turning sharply lower, as is seen in the combined ongoing Yahoo Finance chart of Prudential, PUK,  and other life insurance companies, RI, LNC, PL.

With the exhaustion of the world central banks monetary authority, clearly evidence by the trade lower in Aggregate Credit, AGG, and US Treasuries, TLT, and Mortgage Backed Bonds, MBB, the Asset Managers, seen in this Finviz Screener, such as Blackrock, BLK, and STT, that coined liberalism’s wealth turned lower. Frances Coppola of The Week writes America’s greatest export is its debt. The US Hegemonic Empire, US Stocks, VTI, and The Too Big To Fail Banks, RWW, traded lower, on the exhaustion of fiat money, that is Credit, AGG, and Major World Currencies, such as the Euro, FXE, and the Australian Dollar, FXA, and Emerging Market Currencies, such as the Brazilian Real, BZF.

The credit providers seen in this Finviz Screener, such as IX, AXP, V, MA, DFS, COF, all turned lower on the rise of the Interest Rate on the US Ten Year Note, ^TNX, trading higher from 2.74%.  The bond vigilantes in calling the Interest Rate higher are causing debt deflation in fiat wealth.

The Asset Managers, seen in this Finviz Screener, such as Blackrock, BLK, traded lower. Soon regional economic and fiscal nannycrats, working in public private partnerships will coin authoritarianism’s wealth, consisting of mandates of totalitarian collectivism for regional security, regional stability and regional security, as regionalism rises to replace globalism, socialism, corporatism, and clientelism, as the singular dynamo of economic life.  Regional leaders such as Jacques Delors, Jeroen Dijsselbloem, Olli Rehn, Michel Barnier, Klaus Regling, Werner Hoyer, and Jorg Asmussen will be replacing globalist leaders, such as Edward Goldberg, and Richard Haas.    

Liberalism featured wildcat finance, a Doug Noland term, where bankers waived magic wands of credit and carry trade investment of fiat money creation. Authoritarianism features wildcat governance where despots waive authoritarian and debt servitude clubs of diktat money creation.

Analysts with Open Europe research and FAZ report Vice Chairman of Goldman Sachs, Michael Sherwood, has warned that, if the UK left the EU, “A substantial part of our European business would move away from the City to a location within the eurozone”, mentioning Paris and Frankfurt as possible options.

Open Europe relates Beppe Grillo’s blog La Stampa Repubblica report that at a rally in Genoa yesterday, Five-Star Movement leader Beppe Grillo unveiled a seven-point manifesto for next year’s European elections. The list included: a referendum on Italy’s membership of the euro, Eurobonds, an alliance of peripheral eurozone countries potentially aimed at introducing a ‘two-speed euro’, and the abolition of the fiscal treaty on budgetary discipline.

Open Europe relates Reuters Italia Corriere della Sera WSJ: Saccomanni Matteo Renzi, who is very likely to be elected as the new leader of Italy’s main centre-left party on Sunday, said yesterday that he would “absolutely” renegotiate the EU’s deficit limit of 3% of GDP, arguing that “it dates back to Maastricht…It was a different world.”

With the failure of fiat money, destroying prosperity, national GDP, and stimulating recession, regional nannycrats will focus on regional interventionism, specifically on oversight of the factors of production, commerce and trade, via public private partnerships, to establish regional security, regional stability, and regional sustainability. Globalism was the design for commercialism, and corporatism. Regionalism is the blueprint for serfdom. Diktat money will provide experience in austerity.

Major nations, EFA, -0.7, trading lower included Switzerland, EWL, -1.2, on lower Swiss Banks, UBS, and CS.  Sweden, EWD, -1.0, on the fact that it has a high current account deficit, which means that the country is penalized greatly by a rising Benchmark Interest Rate, and South Korea, EWY, as the higher Benchmark Interest Rate destroys global trade opportunities in this export sensitive behemoth, -0.9. The BRICS, EEB, traded lower as follows EWZ, -1.3, YAO, -0.9, CHII, -1.4. And Emerging Markets, EEM, trading lower included the following ARGT, -2.8, TUR, -2.5, and EPU, -2.4. Precious metal mining stocks traded lower to what is likely their bottoms,  GDX, -1.5, and SIL, -1.2

Aggregate Credit, AGG, rose slightly as the Interest Rate on the US Note, ^TNX, traded slightly lower to 2.78%. MarketWatch report Pimco Total Return Fund has 7th month of outflows.  The chart of Pimco Total Return Fund, BOND, when combined with World Stocks, VT, communicates that investors rotated out of bonds and into equities, on the failure of fiat money, that is on the collapse of Credit, AGG, and Currencies, such as Brazilian Real, BZF, Indian Rupe, ICN, Australian Dollar, FXA, Euro, FXE, Swedish Krona, FXS, and Japanese Yen, FXY, on the call of the bond vigilantes of the US Ten Year Note, ^TNX, on the exhaustion of the world central banks’ monetary authority.

Debt deflation at the hands of the bond vigilantes has enabled the currency traders to sell currencies short, destabilizing democratic nation state governance, beginning first in the Emerging Markets, EEM, such as Brazil, EWZ, Developed Nations, such as Australia, EWA, and Sweden, EWD, and now in the Eurozone, EZU, in nations such as Ireland, EIRL, Greece, GREK, and Italy, EWI.

The death of fiat money, coming from the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, on the awareness that the world central banks’ monetary policies have crossed the rubicon of sound monetary policy, translates into economic contraction, recession, and falling Gross Domestic Production, GDP, as Brad Haynes and Silvio Cascione of Reuters report Brazil’s economy shrinks for first time since 2009.

All that wonderful government stimulus the Rousseff administration poured into the nation’s economy recently has done little to rejuvenate growth. The tax breaks and cheap loans unleashed by Rousseff have yielded meager results, and their withdrawal is now clouding the outlook for carmakers and furniture factories. Public spending grew 1.2 percent in the third quarter, the economy’s strongest driver of new demand, but officials have warned there is no room for more stimulus as tax revenues dry up and the government misses budget targets. Markit reports The HSBC Brazil Manufacturing PMI fell to 49.7 in November, from 50.2 in October. After contracting at the margin for the entire third quarter, economic activity in Brazil’s manufacturing sector was unable to sustain October’s rebound and fell back below the 50 mark. The nation’s equity market has underperformed materially against both the global and emerging indices, down over 17% for the year. What’s particularly troubling is the sharp increase in long-term interest rates, as investors dump domestic government bonds. The 10-year rate broke 13.25% today. Given such tremendous uncertainty however, it may be some time before Brazil’s debt and equity markets begin to recover.

Forbes reports American Capital Mortgage Investment passes through 15% yield mark. Yet I comment that the Mortgage REIT, REM, leader, MTGE, is unable to maintain investors, as the rise of the Benchmark Interest Rate, ^TNX, is destroying fiat wealth, and is now turning Dividend Appreciating Stocks, VIG, lower. The failure of fiat money worldwide is destroying the leading dividend stocks beginning first with those companies who have securitized mortgage debt, that is the Mortgage REITS, REM, and has moved on to Brazil Financials, BRAF, Australia Dividends, AUSE, Residential REITS, REZ, Industrial Office REITS, FNIO, Global Utilities, DBU, and Electric Utilities, XLU.

 

On Wednesday, December 3, 2013, European Financials, EUFN, fell sharply lower, leading Global Financials, IXG, Nation Investment, EFA, and World Stocks, VT, lower, as bond vigilantes steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, and drove the Interest Rate on the US Note, ^TNX, moving strongly higher from 2.74%; the European Financials are at the epicenter of investment derisking and deleveraging. European Financials, EUFN, such as National Bank of Greece, NBG, Banco Santander, SAN, Deutsche Bank, DB, and Ireland’s IRE, are leading European Stocks, EZU, lower, with nation investment in Italy, EWI, Spain, EWP, France, EWQ, and Ireland, EIRL, down strongly.

The trade lower in fiat wealth, that is World Stocks, VT, coming on the rise of the Benchmark Interest Rate, ^TNX, pivoted the world out of liberalism and into authoritarianism. Under liberalism one had economic life in the banker regime’s policies of investment choice and schemes of credit, which provide a moral hazard based prosperity. Dynamos such as corporatism, socialism, and globalism, will be failing; there be only a singular dynamo of regionalism.  One now has economic life in the beast’s regime’s policies of diktat of regional governance and schemes of totalitarian collectivism debt servitude. Destiny is at work, fate cannot be altered; the new normal is a life experience of austerity.

Fiat money, that is Credi, AGG, and Major World Currencies, DBV, and Emerging Market Currencies,  CEW, are dead, and as a result the financial markets turned from bull market to bear market, with confirmation coming from the market vane ETFs, seen in this Finviz Screener, OFF, STPP, HDGE, XVZ, GLD, SLV, JGBS, EUO, HYHG,and SAGG, mostly trading higher.  Despite the rise in the US Dollar, $USD, UUP, Gold, GLD, traded higher to strong resistance, taking Gold Miners, GDX, higher.      

The bond vigilantes in calling the Benchmark Interest Rate, ^TNX, higher, stimulated disinvestment out of Indonesia, IDX, and Sweden, EWD, nations with large current account deficits. And gave the currency traders extra strength to continue their war of competitive currency devaluation against the world central banks, that is to sell the Major World Currencies, DBV, such as the Australian Dollar, FXA, the Canadian Dollar, FXC, the British Pound Sterling, FXB, the Swiss Franc, FXF, and the Euro, FXE, which caused the US Dollar, $USD, UUP, to trade higher, and which caused Canada, EWC, the UK, EWU, and Switzerland, EWL, to trade lower.  The currency traders sold Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, on the trade lower in Emerging Market Bonds, EMB, which forced Emerging Market Financials, EMFN, Brazil Financials, BRAF, and Brazil, EWZ, lower. The trade lower in the Japanese Yen, FXY, finally stimulated investment out of Japan, NKY, specifically Credit Provider, IX, electronics leader and global trade company, SNE, and Bank, SMFG.

The continuing rise in the Benchmark Interest Rate, ^TNX, which began on October 23, 2013, by the bond vigilantes, on the exhaustion of the world central banks’ monetary authority, and now to 2.84%, has stimulated disinvestment out of the the European Financials, EUFN, largely on the market understanding that the EU banks are insolvent financial institutions, which in turn has caused disinvestment out of Eurozone Stocks, EZU, and Eurozone Nations, Ireland, EIRL, Italy, EWI, Spain, EWP, Germany, EWG, German Small Caps, GERJ, Netherlands, EWN, and Finland, EFNL, traded lower once again, largely on a trade lower in the European Financial Institutions, EUFN.    

The rise in the Benchmark Interest Rate, ^TNX, coming incorrectly by the media report due to a hot economy producing a lot of jobs as suggested by the ADP Payroll Jobs Report, stimulated disinvestment out of global trade leading nation South Korea, EWY, and its electronics global trade leader, LPL, as well as New Zealand, ENZL, Thailand, THD, and the Phillippines, EPHE, as well as Design Build, FLM, and Automobiles, CARZ.  And the rise in the Interest Rate on the US Ten Year Note, ^TNX, stimulated disinvestment out of yield baring sectors Energy Partnerships, AMJ, North American Energy Partnerships, EMLP. and Global Telecom, IST.  Contrary to common belief, a rising interest rate is not, repeat not helpful economically, nor does it suggest an improving economic picture.

Arnold King writes Dean Baker leads on housing finance policy …  He writes,Way back in the last decade we had a huge housing bubble which was propelled in large part by junk loans that were packaged into mortgage backed securities (MBS) by Wall Street investment banks and sold all around the world. Unfortunately few people in policy positions are old enough to remember back to the this era, which is why they are now in the process of altering rules so that investment banks will be able to put almost any loan into a MBS without retaining a stake (Pointer from Mark Thoma). I have argued that the general trend of housing policy is to give Wall Street and the housing lobby, particularly the Mortgage Bankers, exactly what they want. Baker is one of the few economists on the left who is willing to speak up on this. When I suggested to an audience of conservatives that we needed to engage Brookings to study the effects of housing finance subsidies, people came up to me afterwards to say that they thought that those think tanks would not want to offend important donors.

New Deal Liberal, comments, The article highlights one of the most important point that progressives need to wrap their heads around. It’s not just the big banks that are and were the problem. It’s also the proliferation of aggressive “fair housing” community groups that have pushed and are pushing for greater low income and minority homeownership, not caring at all whether the loans can be paid back or the implications for the financial system and the economy. And Squeezed Turnip comments it’s not the banks nor affordable housing, banking is dead, long live the market based credit system.

I comment that the reinvigorate housing bubble, that is the post 2008 financial system collapse, came via the pursuit of yield, that is a debt trade and Euro Yen, EUR/JPY, currency carry trade, underwritten by the world central banks’s monetary policies of investment choice, sustained by the US Fed, the ECB, the BoJ, and the PBOC.  By enabling almost any loan to be put into MBS, traded by the ETF, MBB, Ultra Junk Bonds, UJB, and Junk Bonds, JNK, and Distressed Investments, FAGIX, to be put into debt purchased by the US Federal Government, financialized risk by the Speculative Leveraged Investment Community so as to privatize profits, and to socialize losses to the public.

The world is pivoting from liberalism to authoritarianism, where banks and government will be integrated for all practical purposes into one, and be known as the government banks, or gov banks for short.  Dr. Housing Bubble asks How much control does the Fed have on the housing market? The current state of housing and the Federal Reserve. Fed now owns roughly 12 percent of home mortgages.  I respond that he Fed, and major investors, such as The Blackstone Group, BX, which traded parabolically lower, as the bond vigilantes called the interest rate on the US Government Note, ^TNX, higher to 2.85%, will become America’s landlord

Jesus Christ, operating in dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, that is in the economic and political administration of all things, has completed liberalism, perfecting its globalism, commercialism, and corporatism, so as to create the most perfect moral hazard based prosperity possible.  Having achieved his 100 year goal, since the creation of the Creature From Jekyll Island, He is now introducing the beast regime of regional governance, seen in Revelation 13:1-4, which will under His direction, rise to rule the entire world in authoritarianism’s policies of regional government diktat, and in schemes of totalitarian collectivism, via regionalism, for the purpose of subjecting all to a debt servitude based austerity; under authoritarianism, all will be debt serfs.  

Menzie Chinn posts in Econobrowser Some observations on the efficacy of monetary and fiscal policy, Japan edition. Based on these observations, a reasonable conclusion is that expansionary monetary and fiscal policy work, even in a highly indebted country such as Japan. Whether these policies ultimately lead to a durable recovery depends on a number of factors, not the least is the strength of the world economy. (Deployment of the “third arrow”, structural reform, isn’t seen as critical by Roubini, for instance.) Further monetary stimulus is being considered; additional action is likely if next year’s sales tax hike noticeably slows growth. [2] More on the Japanese program in the IMF’s Article IV consultation report, from August.

I comment Reuters reports Japan economic package to total $182 billion and relate that Abenomics and the PBOC reforms, produced peak experience in liberalism, both as an age and a paradigm, which was achieved on both pursuit of yield, Junk Bonds, JNK, Ultra Junk Bonds, UJB, Leveraged Buyouts, PSP, and Distressed Investments, FAGIX, as well as investment in the Euro Yen Currency Carry Trade, that is EUR/JPY, which closed at recently at 139.27, and which facilitated liberalism’s grand finale stock market rally, which produced the zenith of Liberalism’s moral hazard based prosperity, seen in World Stocks, VT, peaking out on November 29, 2013.      

Now, with the bond vigilantes calling the Benchmark Interest Rate, that is the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.84%, and steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepener ETF, STPP, steepening, together with the trade lower in the Japanese Yen, FXY, to 95.53, finally, yes finally, disinvestment investment the Nikkei, NKY, has arrived, with Credit Provider, IX, and electronics leader and global trade company, SNE, bank, SMFG, tool manufactures MKTAY, and electrical equipment manufacturer, NJ, trading lower.  

Indeed Abenomics worked, it worked through a lower Yen, FXY, which is stimulating exports and which inflated up, and it inflated, that is goosed up, the Nikkei, NKY, from its June lows to its November 29, 2013, high, all to the glee of the investor.  Bank of Japan monetary stimulus greatly rewarded investors who chose to invest in both Japan, EWJ, and Greece, GREK, as is seen in their ongoing combined Yahoo Finance Chart.  

Given Japan’s monetary decline, reported as deflation, seen in a falling Yen, FXY, BoJ monetary policy has created a “critical risk” for failure of either its Ten Year Notes, or the Nikkey, NKY.  The question comes up why, just why would Abe place his country at risk with such a bold monetary plan? The answer comes back, Abenomics, as well as the recent PBOC reforms have all been part of Liberalism’s Global ZIRP, which is termed by a number of analysts as QEterinty, all for the purpose of levitating stocks into the stratosphere and supposedly reviving a dead, very dead Japanese economy.  

An inquiring mind asks, can a dead economy be revived by Abenomics? Absolutely not, the only thing it can do, and has done is to postpone the day of reckoning, and give investors a great reason for remaining long stocks, as many have done, beginning in July 2013. From a dispensationalist economics viewpoint, one based upon Apostle Paul’s presentation of the concept of household management for the completion of an age, as presented in Ephesians 1:10, Jesus Christ has perfected the age of liberalism, through the interventionist monetary policies of the world central banks, all for the benefit of the investor’s prosperity. There has been a lot of criticism of The Fed, and the Too Big To Fail Banks, RWW, such as Bank of America, BAC, as being some kind of monster, yet Jesus Christ was tasked and destined from eternity past to create and perfect the Creature from Jekyll Island for the benefit of the investor, and to create a large dependent socialist class in Europe, and a client class in Greece, living what the Economist Magazine terms a life experience of pork and patronage, so as to bring the US Dollar Hegemonic Empire to its full expansion. He attained his objective on November 29, 2013, one hundred years after the creation of the US Fed, after the US Central Bank became a model for other central banks and their economies throughout the world.   

Beginning with the rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48 % on October 23, 2013, Jesus Christ opened the First Seal on The Scroll Of End Time Events, and released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states (thereby terminating liberalism), to regional nannycrats and regional bodies such as the ECB, (so as to introduce authoritarianism) who will rule with regional governance policies of diktat. and occupy with totalitarian collectivism schemes of debt servitude.

Economies don’t simply come about because of human action, as the Austrian economists believe, rather they come about through Christ’s dispensation, having been planned from eternity past to support empires, as communicated  by the Statue of Empires prophecy of Daniel 2:25-45.

Now the God, that is the Sovereign Lord God, Jesus Christ, is in the process of terminating the US Dollar Hegemonic Empire. And He is bringing forth the Beast of Daniel 7:7; it will be more awesome than the Creature from Jekyll Island, as it is described as “Beastly, dreadful and terrible, exceedingly strong; it has huge iron teeth; it’s devouring, breaking in pieces, and tramples the residue with its feet.; it’s different from all the beasts that were before it, as it has ten horns”. This fourth beast is very much a revived Roman Empire, as Elevation Ministries posts The Last In A Lineage Of Four Beasts: the Roman Empire, the Greek Empire, the Merdo Persian Empire, and the Babylonian Empire, were its predecessors; and it is a monster that governs in all of the world’s ten regions, that is through its ten manifestations of sovereign authority.

The December 4, 203, call of the Interest Rate higher on the US Ten Year Note, ^TNX, to 2.84%, and the steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepener ETF, STPP, steepening, has further destroyed fiat money, that is Credit, AGG, as well as Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF.  

Bloomberg reports a major fallout of the rise in the Benchmark Rate Aussie Bonds fall strongly. For years, Australia dividends, coming from Australian Government Debt, and Westpac Banking, and other high yield sources has been bundled into the AUSE ETF, and today, it’s recent daily chart shows a 1.3% lower to support at the edge of a huge head and shoulders pattern at 57.66.  It’s monthly chart going back to 2009 shows how the US Fed monetary policy of QE restarted global investment. And its daily chart shows how the rise in the Benchmark Rate, ^TNX, destroys fiat wealth in the Australian Dollar, FXA, natural resource, that is Global Industrial Mining, PICK, Iron Ore Miner, BHP.  US Fed interventionist policy inflated currencies under liberalism with the result of rewarding investors; but now with the failure of fiat money, that is Credit, AGG, and Currencies, such as the Australian Dollar, FXA, the bond vigilantes are destroying fiat wealth, and introducing authoritarianism.  

Liberalism featured inflationism coming from the creation of fiat money; it was the age of investment choice and credit. Another word for credit is trust. Investors trusted in the monetary policies of the central bankers, and schemes of debt trade investing and currency carry trade investing, to create prosperity, all for the purpose of corporatism, commercialism, and globalism.      

But authoritarianism, introduced by Jesus Christ on October 23, 2013, with the bond vigilantes calling the interest rate higher on the US Ten Year Note, ^TNX, higher from 2.48%, terminated the banker regime and introduced the beast regime, features destructionism coming from the death of fiat money and the introduction of diktat money. It is the age of diktat and schemes of debt servitude. Debt serfs trust in the economic policies of nannycrats to enforce austerity, all for the purpose of regionalism.  

Today, December 4, 2013, the bond called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.84%, with the result that the chart of Aggregate Credit, AGG, and Mortgage Backed Bonds, MBB, manifested a severe breakdown. Clearly Fed monetary policy to maintain the value of these bonds has failed.  An inquiring mind asks, will the value of US Treasuries, TLT, hold at the current level?

Zero Hedge reports The Fed now owns 1/3 of the entire US bond market. I add that much of that is in Distressed Investments, such as those traded by Fidelity’s  FAGIX mutual fund, which the Fed acquired in 2009, with the trade out of “money good” US Treasuries for all kinds of horrific debt owned by the banks, so as to restart the global economy and benefit the investor.

With the Fed owning such a large amount of US Debt, such as Distressed Investments, FAGIX, Ten Year Government Bonds, TLT, and Mortgage Backed Bonds, is there any “money good” at the Fed?  

Bloomberg reports Thailand resilience eroding as protests sap confidence. Thailand’s economy has withstood coups and regime-changing protests for decades, luring manufacturers including Toyota Motor Corp. even when turmoil dented stocks and the baht. This time may be tougher.

The rise in the US Ten Year Note, ^TNX, has destroyed investment in global growth nations, such as Thailand, THD, and South Korea, EWY, as is evidenced by the fall in its stock value corresponding to the call by the bond vigilantes of the Benchmark Rate ^TNX higher from 2.48%, on October 23, 2013.  

The three month combined ongoing Yahoo Finance Chart of South Korea, EWY, Indonesia, IDX, Brazil, EWZ, Australia, EWA, Thailand, THD, and the Philippines, EPHE, clearly show that the bond vigilantes, in steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepener ETF, STPP, steepening, and in calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, was an “extinction event” that terminated liberalism’s life experience as one being an investor with choice.  These countries are “hot money flow” countries, where money flows in based upon global trade potential, and likewise where money quickly flows out on the exhaustion of that potential.  

Globalism produced the age of global trade, that was characterized by long B2B supply chains, with sourcing in the Emerging Markets, EEM, such as Thailand, THD, and Brazil, EWZ, and manufacturing in Developed Market, South Korea, EWY, and with investment flowing from massive rivers of credit investing and currency carry trade investing, that commenced after the 2008 financial system crash, with US Fed monetary policies of QE, came to an end on Monday, December 2, 2013, as bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.84%.  

Regionalism will produce the age of regional economic governance, where nannycrats rule in public private partnerships overseeing the factors of production, commerce and trade, to establish regional security stability, regional security, and regional sustainability.  

Under authoritarianism, one’s life experience will be one as a debt serf experiencing diktat.

The US Dollar Hegemonic Empire, synonymous with the banker regime, and global trade, is history, gone forever, on the failure of fiat money. The Rider on the White Horse, who has a bow without any arrows, seen in Revelation 6:1-2, is effecting global coup d etat transferring sovereignty from democratic nation states to regional nannycrats, and is introducing the Two Footed Empire, with its ten toes of miry mixture of regional governance in the world’s ten regions and totalitarian collectivism in all of mankind’s seven institutions, seen in the Statue of Empires prophecy of Daniel 2:25-45, this empire is the beast seen in Daniel 7:7, and in Revelation 13:1-4, whose purpose is to introduce dikat money.   

RT reports Australia to abolish phony debt ceiling and continue spending spree.  Australia will dive further Down Under Into Debt, as lawmakers reached a deal to do away with a limit. The government can now borrow as much as it wants, and will avoid a shutdown when it reaches the AU$300 billion debt limit on December 12.

Federal Treasurer Joe Hockey won over the Greens who had previously supported the Labor Party cap of AU$400 billion (about $373 billion). Earlier, the upper house blocked a motion to raise the debt ceiling to AU$500 billion. The government must justify any increase in debt up to AU$50 billion Greens leader Christina Milne told reporters in Canberra. “This, I think, will return some maturity to the debate around debt and get rid of what has become a phony debate every time the government has wanted to raise the debt ceiling,” Milne said Wednesday. In return, Hockey promised the Greens that the budget will include comprehensive debt figures on how much the government is spending on climate change. If lawmakers didn’t strike a deal by December 12, Australia’s $1.5 trillion economy would have gone ‘down under’ with its government forced into a shutdown.

Government programs will continue to run on borrowed money, a strategy National Australia Bank chief executive Cameron Clyne supports to spur growth. Australia has been hit hard by a waning interest in mining investment, but has still held onto its AAA credit rating, ideal circumstances for the government to issue more bonds.

The ceiling was first introduced in 2008 under Kevin Rudd’s Labor government, but has been widely criticized as debt nearly doubled between 2008 and 2012 from 15 percent to 29.3 percent, relative to GDP.  

In the first nine months of 2013, Australia’s economy expanded slower than forecast, growing only 0.6 percent from the first six months. Growth in 2012 was 2.3 percent, below the anticipated 2.5 percent benchmark set out by economists. The forecast is gloomy unemployment isn’t expected to drop until 2015, a budget deficit over $30 billion is expected for the 2013 fiscal year, and free trade talks with neighbors are breaking down over spy revelations.

After winning office on September 7, Prime Minister Tony Abbott announced he wanted to expand Australia’s duty-free trade relationship with China, Japan, India, Indonesia, and 8 other countries by singing the Trans-Pacific Partnership.

Christina Milne called the debt ceiling “little more than a political weapon” which doesn’t actually limit government spending.

The US established its debt ceiling before World War II to protect from out-of-control spending, and more carefully evaluate spending programs, but lawmakers continue to raise spending powers by taking out more debt. Well-known for the role it plays in US politics, the debt-ceiling debate forced America to shut down in October, and could again in December. The outstanding debt of the world’s largest economy is currently $17 trillion, and is spread through domestic and foreign debt.

Most countries don’t use a debt-ceiling to control borrowing; instead lawmakers pass a budget they know the president will sign. The US Treasury overseas bond-buying, or borrowing, but in most countries the authority lies solely with this institution, and doesn’t need congressional approval to borrow more. That is why most countries operate without a debt ceiling Sweden, UK, Canada, Germany, France, and Japan, for example.

European Union members peg their debt limit to a percentage of GDP, instead of a fixed amount of money, like the US and Australia. Countries strive to keep debt less than 60 percent of GDP, but most of Europe is failing right now. In the first half of 2013, government debt-to-GDP increased to 86.8 percent across the 28-member zone, according to Eurostat data. Countries like Greece (169.1 percent) Italy (133.3 percent) and Portugal (131.2 percent) have all overstepped their debt boundaries.

I comment that, as foretold in Bible prophecy of Revelation 13:1-4, a region of economic governance is emerging; it will provide life experience in the diktat of nannycrats, as well as the debt servitude of  totalitarian collectivism.

Bloomberg reports Currency Volatility climbs to eight week high  “After what has been a relative dearth of U.S. data, markets have swung back to focusing on the U.S.,” said Callum Henderson, the Singapore-based global head of currency research at Standard Chartered Plc. “I would think we’re going to see more choppy price action from now until year end.” JPMorgan’s Global FX Volatility Index was at 8.8 percent, headed for the highest close since October 9, 2013.  The Yen is very correlated with risk,” said Mitul Kotecha, global head of foreign-exchange strategy at Credit Agricole Corporate & Investment Bank in Hong Kong. “In recent days, risk barometers have been rising, which has resulted in a drop in dollar-yen.”  And the pound weakened before Bank of England policymakers, led by Governor Mark Carney, meet today to review monetary policy. Officials will leave the key interest rate unchanged at 0.5 percent, a separate survey showed. Sterling dropped 0.2 percent to $1.6344 after climbing to $1.6443 on Dec. 2, the strongest since August 2011.

I comment that the Bank of England easy money policy, better said money printing operation, has been driving the GBP/JPY, that is the FXB:FXY, parabolically higher. But the loose monetary policies of the world central banks have finally made money good investments bad, as is seen in US Treasuries, TLT, and World Treasury Bonds, BWX, and now Nation Investment, such as the UK, EWU, EWUS, Global Financial Institutions, such as Lloyds Banking Group, LYG, and Prudential, PUK, trading lower in value. Their drop is in inverse proportion to the steepening of the Steepner ETF, STPP, steepening, and in inverse proportion to the rise of the Interest Rate on the US Ten Year Note, ^TNX, coming from the call of the bond vigilantes who now are in control of interest rates globally.

The monetary authority of the world central banks ended on October 23, 2013, when the bond vigilantes called the Benchmark Interest Rate, ^TNX, higher from 2.48%, with the result that fiat money, consisting of Credit, AGG, and Major Currencies, DBV, and Emerging Market Currencies, CEW, died.  Yes fiat money died on October 23, 2013. And now with the rise in the Benchmark Interest Rate, ^TNX, higher to 2.84% on December 4, 2013, fiat wealth died as well.

Liberalism as an age and as a paradigm has ended with the death of fiat money and fiat wealth. Now, Authoritarianism is rising as an age and a paradigm, where diktat money, and truly sovereign wealth, that being economic rule by nannycrats, and the physical possession of gold bullion, will be real wealth.   

Bloomberg reports monetary deflation in China. China Swap Rate rises for fifth day after PBOC doesn’t add funds. China’s one-year interest rate swaps rose for a fifth day as the central bank refrained from adding funds to the interbank market. The People’s Bank of China didn’t inject money by selling 14-day reverse-repurchase agreements today, according to two traders at primary dealers required to bid at the auctions. The monetary authority auctioned the contracts on Nov. 21 and Nov. 28, after a two-week halt. The PBOC drained a net 47 billion yuan ($7.7 billion) this week, after injecting 17 billion yuan last week, according to data compiled by Bloomberg. The cost of interest-rate swaps, the fixed payment needed to receive the floating seven-day repo rate, rose one basis point, or 0.01 percentage point, to 4.7 percent as of 10:15 a.m. in Shanghai, according to data compiled by Bloomberg. That matched yesterday’s intraday peak, which was the highest level since June 21.  

Keynesian Ambrose Evans Pritchard calls for ECB central bank monetary intervention, all for the purpose of social justice

He writes “Monetary stimulus is being withheld because it might help slackers off the hook – the definition of slacking determined by a tiny cell in the German finance ministry – even when needed to cushion fiscal austerity.  This pollution of monetary policy is a key reason why the ECB has let M3 money growth fall to 1.4pc, disastrously undershooting its 4.5pc target, and why it has let inflation drop to near zero on a six-month basis.“ …  I comment that money growth and CPI has fallen because  economic demand being trapped and cornered and doomed by the failure of structural reforms in a common currency union. And CPI prices have fallen because the ECB policies do not stimulate economic growth, rather they have been implemented in a desperate attempt to shield insolvent sovereigns, and insolvent financial institutions from bond vigilantes, but now during the first week of December 2013, the bond vigilantes have been effective in calling both European Financials, EUFN, and EU Debt, EU, lower from their October 23, 2013, through November 29, 2013, highs.  … And I add, Mr. Pritchard should be much more concerned about the bond vigilantes destroying the value of EU Debt, EU, and much more concerned about the short sellers of European Financial Institutions, EUFN, than about the policies of the ECB.

Mr Prichard continues, “This is the nub of the matter. If Club Med states have to deflate, their debt trajectories risk spinning out control.” …  I comment that projected fiscal revenues by the PIGS is likely to come in below projections, and that the debt trajectories are going to soar; but before it reaches that point the European Financials are going to go into meltdown at the hands of the bond vigilantes and stock market short sellers; and out of this will come Financial Apocalypse, that is the credit bust and financial system breakdown, as foretold in Revelation 13:3-4.

Mr. Pritchard continues, “Falling nominal GDP means the debt burden is rising on a shrinking base. The “denominator effect” is deadly when the public/private debt stock is high: 276 pc in Italy, 300pc in Greece, 330pc in Spain and 389 pc in Portugal. It is why Italy’s public debt has jumped from 119 pc to 133 pc GDP in just over two years despite draconian austerity and a primary budget surplus.

Ebrahim Rahbari from Citigroup said the policy is pushing the South into debt-deflation and is likely to prove self-defeating. Officials in Brussels and Berlin are counting on exports to rescue Club Med, but Mr Rahbari says the ratio of exports to GDP is just 34pc for Spain and 30pc for Italy, giving them too little gearing”  … I comment this sure is damning of European socialism and Greek socialism, isn’t it. Yet this hole is one designed and currently dug by Jesus Christ in dispensation, as is presented in Ephesians 1:10, to fully complete liberalism, bringing its moral hazard based prosperity to a climax. Under authoritarianism, all the debt, public, private, and corporate, will be applied to every man, woman, and child in the EU; all, whether Nordic or Latin, that is of the northern or the southern, will be one, living as debt serfs in a gulag of regional governance and totalitarian collectivism, as foretold in Revelation 13:1-4.    

Mr Pritchard concludes “The only way for Europe to break out of this trap is to lift the South far enough above the deflation line to gain breathing room. The whole eurozone must have a higher inflation rate” … I comment that there are three chances of this happening, no way, no how, and never.

In his article, Mr Prichard provides this important information “Mr Callow (global strategist at Barclays) said Excess industrial plant in China is exporting deflation across the world” China’s fixed capital investment over the past year has been $4 trillion, compared with $3 trillion for the entire EU and $3 trillion for the US. This has grown eightfold in a decade. It is a vast new source of supply for a saturated global economy.

China itself is now in PPI deflation. Factory gate prices fell 1.5pc in October. This has the makings of an almighty profits squeeze since wages have risen 13.6pc over the same period. There is a school of thought that China’s investment glut will prove very hard to manage and this will trigger the next big round of angst in the world economy, but exactly when this will happen is anybody’s guess.  

The chart of Oil, USO,  manifested a pop higher, as Bespoke Investment Group, reports Crude inventories break ten week streak of increases

The chart of the $USD, shows a close at $80.67; and the chart of its 200% ETF, UUP, shows that the US Dollar, is at a major pivot point. An inquiring mind asks, will it rise to hit strong resistance, or fall lower?  If it trades higher, will Gold, GLD, take another hit and fall lower, ,knocking down the value of gold mine?

Retail Stocks, XRT, traded lower as Tyler Durden of Zero Hedge posts US Retailer hell in one chart

And also reports Looming US Retail implosion: DeGrowth 2014

SmartGridNew reports Smart meter wars escalate in British Columbia

BBC reports Farmers in South Dakota and Wyoming describe ‘worst storm in 150 years

Business Insider reports A Period Of Bitterly Cold Temperatures Not Seen In A Decade Is About To Hit Parts Of The US.

 

On Thursday, December 5, 2013, Australia’s Westpac Banking and the Too Big To Fail  Banks, led Global Financials, IXG, -1.0 lower with WBK, -2.3, RWW, -0.9, and EMFN, -0.5, and EUFN, -0.6, IRE, -3.2, SAN, -1.5, DB, -1.2, NBG, -1.5 and SHG, -1.3 ,WF, -1.0,  KB, -1.2

Nation Investment EFA, -0.6, with RSX, -1.8, NKY, -1.4, IDX, -1.4, TUR, -1.3, EWS, -1.3, EWA, -1.2, KROO, -1.0, EZU, -0.5,  GREK, -2.0, EWP, -1,3, and EWI, -1.5,

Yield bearing sectors REM, -0.9, AUSE, -0.9, XLU, -0.9. PSP, -0.8, AMJ, -0.8, and EMLP, -0.4

World Stocks, VT, -0.9, with TAN, -2.9 with SOL, -19.1%, IHF, -1.0

Precious Metal Mining Stocks, GDX, -2.6, SIL, -2.1. If I were to invest in gold mining stocks I would invest in AUY, NGD, AEM, but I believe that NUGT, and UGL, provide better investment opportunities; I recommend that one purchase and take physical possession of gold bullion, in as much as the world has pivoted from liberalism into authoritarianism and is at risk for severe financial system shocks.     

The $USD, closed 0.5% lower at 80.28; UUP, traded strongly lower.

FX Street reports the EUR/JPY closed at 139.04. Aggregate Credit, AGG, -0.22.

So far this month, that is the first week of December 2013, Brazil Financials, BRAF, are leading Brazil, EWZ, lower; and also Westpac Banking, WBK, is leading Australia, EWA, lower; and also Shinhan Financial, SHG, is leading South Korea, EWY, lower; and also a European Financials, EUFN, are leading European Stocks, EZU, lower, with nation investment in Italy, EWI, Spain, EWP, France, EWQ, Ireland, EIRL, Germany, EWG, falling sharply.    

Barron’s reports 30-Yr Mortgage Rate Hits 10-Week High 4.46; Mortgage REITS, REM, -0.9% on the day, -2.4% on the week, and -2.4%, on the month.

Gordon T. Long writes of investment risk and reward in Safehaven.com Flows: Liquidity, Credit and Debt. I comment that the flow of money into fiat wealth investments ceased on December 2, 2013, and is now turning negative. For example investors are derisking out Credit Investments such as Australia Dividends, AUSE, and deleveraging out of Nation Investments, such as Australia, EWA, and Financial Investments, such as Westpac Banking, WBK, and Global Industrial Mining Investments, such as BHP Billiton,  BHP, on dwindling trust in the monetary policies of the world central banks, as the bond vigilantes have gained control of the Benchmark Interest Rate, ^TNX, calling it higher from 2.48%, on October 23, 2013. Clearly the monetary policies of the world central banks have crossed the rubicon of sound monetary policy and have made “money good” investments bad.   

The Monetary Malpractice (copyright) presented by Mr. Long is helpful in understanding Jesus Christ operating in dispensation, that is in the Economy of God, a concept presented by the Apostle Paul in Ephesians 1:10, where he has been tasked by God the Father, to mature every age, that is every dispensation, bringing it to completion, much as a ship’s captain assures the completion of the manifest before setting sail. The zenith of liberalism was achieved on November 29, 2013, when peak moral hazard fiat wealth was attained, as is seen in World Stocks, VT, topping out.  

Yet, there be no “unintended consequences”; such is a construct of the Austrian economics mind, which is given to the conviction that there are sovereign individuals who are at the mercy of money lords, who have usurped liberty and are ruling in supplanted authority. This is simply nonsense from the dispensationalist economics thinking, as Jesus Christ, has all authority, and in the age of liberalism, and under the paradigm of liberalism, gave sovereign authority to democratic nation states, and the banker regime, all for the maximization of investment choice, under the dynamos of corporatism, globalism, socialism, and commercialism.   

But on October 23,2013, He  opened the First Seal on The Scroll Of End Time Events, and released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, who rule in authoritarianism with regional governance policies of diktat. and totalitarian collectivism schemes of debt servitude. Under the singular dynamo or regionalism, nannycrat rule and make claim on personal property, establishing regional property and regional property rights, as superior to personal property rights, and regional economic activity superior to national economic activity.

Inasmuch as money is flowing out of fiat investments, and personal property rights are being destroyed, one should consider investing in and taking personal possession of the real investment of gold bullion.  

Mr. Long writes correctly that the Federal Reserve’s purpose is all “about the soundness and protection of the banks”. I comment that is why banks will soon be integrated with the government and be known as the government banks or gov banks for short.

Mike Mish Shedlock writes Taxed to the point of no recovery; France plans tougher exit tax.  Mr. Shedlock cites Veronique de Rugy writing for the National Review: France to beef up its exit tax. The French government has also announced that it will beef up the exit tax, a tax first implemented by Sarkozy in 2012 intended to slow the pace of people leaving the country for tax reasons. The exit penalty taxes capital gains at the rate of 19 percent and adds a 15.5 percent payroll-tax-like penalty. The tax isn’t paid as taxpayers exit the country, but people have to pay the tax if they sell their assets within eight years after their exit.

I comment Jesus Christ, acting in dispensation, that is the administration of all things economic and political moved the bond vigilantes to call the Interest Rate on the 10 Year US Government Bond, ^TNX, higher from 2.48%, on October 23,  2013; this constituted an ”extinction event” which terminated Liberalism’s fiat money system and introduced Authoritarianism’s diktat money system. What Mr. Shedlock is reporting is diktat money being rolled out by the nannycrat Hollande.  

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are enforced by nannycrats, such as those reported by the such as The Irish Times report Troika Seeking Tough Post Bailout Terms In Ireland In Exchange For Precautionary Loan, heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, capital controls, import curbs of branded items, budget cuts in social programs such as Head Start, sale of a country’s central bank’s gold reserves, fiscal policy councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, for Eurozone wide fiscal governance, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, as well as in the Eurozone, a fiscal union, where sovereign regional leaders, as well as sovereign regional sovereign bodies, such as the ECB, invoke all kinds of mandates for regional security, stability, and sustainability.

David Henry of Reuters reports US car buyers borrow more as rates fall and standards loosen. Yet the Interest Rate on the US Ten Year Note, ^TNX, is being driven higher by the bond vigilantes, on the exhaustion of the world central banks monetary authority, and now stands at 2.84%, with the result that it has been destroying investment in Automobiles, CARZ, ever since the Benchmark Interest rate began rising from 2.48% on October 23, 2013. Loose money, while making automobile transportation more readily available, is now destroying fiat wealth. And I comment that subprime lender automobile lender, CACC, is now trading lower as well. Finally the fiat wealth swell, that came by debt trade investing and currency carry trade investing, is starting to fall like a great timber being cut.

Zero Hedge reports Top 4 US banks hold $217 trillion in derivatives. And United Press International, UPI, 1914 and today 

One’s ideology determine one’s life experience.

Sound and beneficial ideas are in scarce supply, that is in the general sense of the word, in limited supply. Sound and beneficial ideas help one understand reality and make sound and beneficial decisions.

One’s ideology forms the basis of one’s person and is based upon either the fiat of philosophy or religion, which is basically will worship, that is, the worship of one’s own will, or one’s ideology is based upon Scripture, that is the Gospel, or Good News, of the objective reality of Christ, Ephesians 4:21-24, which provides Grace and Truth, John 1:17.

All ideologies present sovereign authority.   

Those of Roman Catholic conviction, believe in Encyclicals, embrace Catholicism, believe the Pope and the Church to be sovereign, and have life experience as a Roman Catholic.

Those of Austrian economics conviction, believe in principles of liberty, embrace Libertarianism,  believe people to be sovereign individuals, and have life experience as a Libertarian.

Those of Christian conviction, embrace Christianity, and specifically an ism such as Dispensationalism, believe Christ to be sovereign, and have life experience as a Christian.   

Unfortunately, much of today’s christian religion is based upon the false premise that one chooses Jesus.  However, sound doctrine is both reformed based, along the lines of John MacArthur, John Gill, and John Calvin, as well as restored based, along the lines of Witness Lee and Watchman Nee; and presents that God chose the believer in Christ from eternity past, predestined him, appointed him, and made him accepted in The Beloved.

An ism is defined as a process that produces a state-of-being from ideas; one adopts an ideology, embraces an ism, and the two produce the individual’s state-of-being, having life experience. There be many isms; each has an ism; yes each has economic action in some movement. Liberalism provided clientelism, socialism, keynesianism, corporatism. Authoritarianism provides regionalism. And there are outside of the box, alternatives, libertarianism and dispensationalism.      

Bloomberg reports Keynesians revive a Depression idea by Caroline Baum. The “it” is secular stagnation, which seems to be the New New Thing or the new normal: a way to describe the persistent state of subpar economic growth plaguing developed nations. Think of it as Japan’s lost decade gone global. I comment that “secular stagnation” is the result of jobs going to other countries, (think of Rockford, IL) and to quote Mike Mish Shedlock “What’s needed is work rule reform, easier standards to fire people, fewer government workers, lower minimum wages, less regulation, and less taxation.”

In reference to the Eurozone, and in particular in reference to Spain and Italy, Mike Mish Shedlock writes Simmering in a pot of misery–What’s needed vs. What happened “What’s needed is work rule reform, easier standards to fire people, fewer government workers, lower minimum wages, less regulation, and less taxation”. And Aristides N. Hatzis in WSJ posts Greece’s Reforms Have Only Cracked the Surface  Last week Ángel Gurría, the secretary-general of the Organization for Economic Co-operation and Development, visited Athens to present the OECD’s latest economic survey of Greece. Since 2010, the report said, Greece “has made impressive headway in cutting its fiscal and external imbalances and implementing structural reforms to raise labor market flexibility and improve labor competitiveness.” But the OECD also emphasized that “more needs to be done.” The organization’s assessment of competition in four key sectors in Greece, also released last week, identified 555 problematic regulations and 329 provisions.

The EU is in late stage, better said terminal stage socialism, which had been saved up until now from collapse by the ECB’s LTRO 1, and 2, and OMT. So far this month, that is the first week of December 2013, Brazil Financials, BRAF, are leading Brazil, EWZ, lower; and Westpac Banking, WBK, is leading Australia, EWA, lower; and Shinhan Financial, SHG, is leading South Korea, EWY, lower. European Financials, EUFN, such as Greece’s NBG, Spain’s SAN, and Ireland’s EIRL, are leading European Stocks, EZU, lower, with Italy, EWI, Spain, EWP, France, EWQ, and Ireland, EIRL, down strongly. The picture here is one of the World Financials, IXG, leading Nation Investment, EFA, and World Stocks, VT, lower, with a real investment deflationary black hole, that is disinflation (falling stock prices) emerging in the Eurozone, if one believes bible prophecy of Revelation 13:1-4, to be true.   

The trade lower in fiat wealth, that is World Stocks, VT, on December 2, 2013, coming on the rise of the Benchmark Interest Rate, ^TNX, to rise above 2.74%, at the debt deflationary hands of the bond vigilantes and competitive currency deflation hands of the currency traders, pivoted the world out of liberalism and into authoritarianism.

Under liberalism one had economic life experience in the banker regime’s policies of investment choice and schemes of credit, which provided a moral hazard based life experience of prosperity. Liberalism’s dynamos such as corporatism, socialism, and globalism are winding down  

Now under authoritarianism, the singular dynamo of regionalism is powering up; one has economic life experience in the beast’s regime’s policies of diktat of regional governance and schemes of totalitarian collectivism debt servitude establishing crushing austerity, as the world comes to cope with economic deflation that is falling aggregate demand. The new normal is a life experience of austerity.

There will be no opportunity for Austrian economics designed work rule reform, easier standards to fire people, fewer government workers, lower minimum wages, less regulation, and less taxation. Nope, no way, and never, as a whole new economic age and paradigm has commenced; it is called authoritarianism, and it is coming regionally, first in the EU, and it is coming to provide the experience of totalitarian collectivism, this being foretold in Revelation 13:1-4. Such things as Mr Shedlock proposes do not exist in the Authoritarian Desert of the Real, they are simply dreams of the Austrian economist mind.

Evidence of economic deflation, that is falling aggregate demand, is found in the Tara Patel Bloomberg report Veolia to cut 700 French jobs as clients seek lower price.  Europe’s largest water and waste utility, Veolia Environnement VIE:FP, plans to lose 700 jobs as part of a proposal made in March to cut about 10 percent of the workforce at its water division in France.  The 700 planned losses, already negotiated with unions, will be on a voluntary basis, Sandrine Guendoul, a company spokeswoman, said today by telephone. The Paris-based utility will provide more details at a works-council meeting this month. Veolia, vying with Suez Environnement SEV:FP  for French waste and water contracts, is almost two years into a turnaround plan to reduce its global reach, curb debt and raise profit. The utility has been hurt by an industrial slowdown in Europe that cut waste handling volumes, while French municipalities have demanded lower prices for water services.

Fiat wealth deflation, that is investment deflation, seen in the chart of Water Resources, PHO, company, Veolia, VE, on December 2, 2013, coming on the rise of the Benchmark Interest Rate, ^TNX, to rise above 2.74%, at the debt deflationary hands of the bond vigilantes and competitive currency deflation hands of the currency traders evidences that the world pivoted out of the age and paradigm of liberalism and into that of authoritarianism.

Dispensationalism is defined as the concept that Jesus Christ is exercising administrative management of all things in each of mankind’s ages, to make them full, Ephesians 1:10, Ephesians 3:2, Ephesians 3:9, Colossians 1:25.

Dispensationalism comes from Strong’s Greek word oikonomia, #3622, dispensation, and means household dispensing, household stewardship, household management and economic oversight of property for the completion of every age, era, and epoch and time period. Dispensations are time of mercy and judgment.

Dispensationalism produces both the “saints” and the “aints”.

MB-Soft relates Dispensational theology grows out of a consistent use of the hermeneutical principle of normal, plain, or literal interpretation. This principle does not exclude the use of figures of speech, but insists that behind every figure is a literal meaning. Applying this hermeneutical principle leads dispensationalism to distinguish God’s program for Israel from his program for the church. Thus the church did not begin in the OT but on the day of Pentecost, and the church is not presently fulfilling promises made to Israel in the OT that have not yet been fulfilled.

The Dispensation Economics Manifest, that is the dispensation ideology is the foundation for a life experience of economic action in the person of Christ, having His virtue and ethics, and this establishes one as elect, living in spirituality and righteousness, separating from fiat who live in carnality and iniquity.

As revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is establishing a new order consisting of fifteen New Things in Christ, on October 23, 2013, by releasing the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse. The New Things of Christ are presented in the Dispensation Economics Manifest, which is based upon Ephesians 1:10, the biblical revelation that Jesus Christ is operating in dispensation, that is the household management plan of God to mature, complete and fulfill all things in every age.

 

On Friday, December 6, 2013, Currency traders called the Euro Yen Currency Carry Trade, EUR/JPY, strongly higher to close at 140.99, taking Chinese Financials, CHIX, and Chinese Industrials, CHII, to lead the stock market higher on the day on a very strong jobs report, with Bespoke Investment Group reporting Jobless claims back below 300K  

Global Financials, IXG, World Stocks, VT, Nation Investment, EFA, popped higher on the day, but traded lower on the week, as the stock market turned from bull market to bear market on December 2, 2013, when the bond vigilantes called the Interest Rate on the US Ten Year Note, higher to 2.80%.  

The Benchmark Rate closed the week higher at 2.88%, transferring death not only to fiat money, that is Aggregate Credit, AGG, and Major World Currencies, such as the Australian Dollar, FXA, and Emerging Market Currencies, such as the Brazilian Real, BZF, but transferring death to fiat wealth, that is World Stocks, VT, as well.   

The Euro Yen Currency Carry Trade, EUR/JPY, rose strongly to close at 140.99, taking Chinese Financials, CHIX, and Chinese Industrials, CHII, to lead the stock market higher on the day on a strong jobs report. Of note, the inverse of Japanese Ten Year Government Bonds, JGBS, popped higher, on the strong sell of the Japanese Yen, FXY. With the rise in stocks, the Inverse Of The Market ETFs, STPP, HDGE, XVZ, GLD, JGBS, EUO, HYHG, SAGG, seen in this Finviz Screener,which one might used for margin collateral in a short selling account, for the most part traded lower on the day. Investing.com reports that The Yield on the 10 year JGBs jumped higher from 0.630% to 0.678% on the 1.1% trade lower in the Yen, FXY, to 94.99; and that the Nikkei, NKY, traded 2.0% higher.

Financial sectors: IXG, 1.2%, CHIX, EMFN, KRE, IAI, RWW, EUFN, EMFN, EPI, BRAF, and KCE, closed higher.

Consumer sectors, PNQI, RXI, IYC, FDN, KXI,  PBJ, and IHF, closed higher; XRT, closed lower.

Global industrial sectors: FXR, CHII, PKB, RZG, and PSCI, closed higher.

Faded Industrial Production: IPN, WOOD, SLX, PICK, CARZ, FLM, MHK, and IGN, closed higher.

Global growth sectors: DNL, SMH, BJK, IBB, PJP, SOCL, FPX, RZG, closed higher; CSD, and TAN closed lower.

Global growth nations: DNL, TAO, EIRL, EWY, NKY, EEM, EWG, ECNS, and EWD, closed higher.

World sectors: VT, 1.2%, PBS, IGV, XTN, QQQ, SEA, and PPA, closed higher.

Nation Investment: EFA, 1.2%, YAO, ECNS, INP, EWW, IWM, VTI, EWL, EZU, EWI, EWG, EWN, EFNL, EWP, GREK, EWQ, and EIRL closed higher. … Dead Nation Investment: EEM, 2.2%, EEB, 1.8%, TUR, THD, EPHE, IDX, EWZ, EPOL, EGPT, EZA, EWT, ECH, EPU, EIS, EWU, EWC, ARGT,  EWA, VNM, NORW, EWM, RSX, ENZL, KXI, MOO, IHF, and XOM, closed higher.   

Yield sectors: VIG, 1.4%, PSP, IST, XLU, IYR, DBU, ROOF, JNK, UJB, and BKLN, closed higher.

Junk Bonds, JNK, Ultra Junk Bonds, UJB, Emerging Market Bonds, EMB, all traded higher, taking   Aggregate Credit, AGG, higher, even though the Interest Rate on the US Ten Year Note, ^TNX, traded higher to 2.88%, and the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened, as is seen in the Steepner ETF, STPP, steepening.

Major World Currencies, DBV, and Emerging Market Currencies, CEW, both traded higher on currency carry trade investing which took the Japanese Yen, FXY, to close sharply lower.   

Please consider that the “age of deflation” has commenced: “fiat wealth deflation” has commenced as deflationism is underway, The European Financials, EUFN, and the European Stocks, EZU, and Italy, EWI, and Spain, EWP, are leading the global stock market lower. Reuters reports falling aggregate demand, Unilever streamlines products, cuts [2,000] jobs to confront world slowdown

The bull market that began in June 2013, turned to a bear market on December 6, 2013, as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.88%. Tyler Durden in article Stocks Tank presents Bloomberg chart showing that both stocks and credit have now failed, as bond vigilantes have called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.88%.

 

World Financials, IXG, closed 1.2% higher, on the day, 1.5%, lower on the week.  

World Stocks, VT, closed 1.2% higher, on the day, 0.8%, lower on the week.

Nation Investment, EFA, close 1.2% higher, on the day, 1.3%, lower on the week.

Loss leaders for the week were the European Financials, EUFN, the Brazil Financials, BRAF, and Retail, XRT,  Major Airlines, and Apparel Retailers. Falling stock prices are a deflationary omen as well as a destabilizing economic factor causing economic recession.    

European Financial, EUFN, closed 1.8% higher, on the day, 2.4%; lower on the week.   

Eurozone Stocks, EZU, closed 1.4% higher, on the day; 2.1% lower on the week.  

Italy, EWI, closed 1.5% higher, on the day; 3.5% lower on the week.

Spain, EWP, closed 0.8% higher, on the day; 3.2% lower on the week.

The failure of investment seigniorage in the European Financials, EUFN, drove Euorpean Stocks, EZU, and EU Nation Investment, in Italy, EWI, and Spain, EWP, lower, is most striking given the rallying EURJPY, seen in chart of the spread between Ultra Long the Euro ULE and Ultra Short The Yen YCL

The chart of Eurozone Stocks, EZU, relative to Eurozone Debt, EU, EZU:EU,  communicates that are stocks are no longer able to leverage higher debt.   

Brazil Financials, BRAF, closed unchanged on the day; 5.9% lower on the week.

Brazil, EWZ, closed 1.3% higher on the day; and 3.7% lower on the week.

Retail, XRT, closed 0.6% lower, on the day; 2.5%, lower on the week.

In Europe, a genuine disinflationary and deflationary cycle is at work: disinflation (falling prices) and deflation (falling aggregate demand) are both occuring.  And now with the trade lower in fiat wealth, that is World Stocks, VT, on the week ending December 6, 2013, coming on the rise of the Benchmark Interest Rate, ^TNX, to 2.88%, a marked epic change has occurred, that being the destruction of both fiat money defined as Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, as well as fiat wealth, defined as Eurozone Stock, EZU, are trading lower.  The result is the world has pivoted out of the age and paradigm of liberalism  …. and into the age and paradigm of authoritarianism. 

Bloomberg reports Taper defied with bond spreads least since ’07.  I comment that tapering, that is, further monetary stimulus, cannot help and will not help; further monetary stimulus will only strengthen the hand of the bond vigilantes who have been calling the Benchmark Interest Rate, ^TNX, higher since October 23, 2013, as the policies have crossed the rubicon of sound monetary and have made “money good” debt, and “money good” currencies, and now “money good” fiat wealth, that is World Stocks, VT, bad.  Now, “something is going terribly wrong”, the financial market has turned from a bull market into a bear market. The world pivoted into Kondratieff winter on the failure of fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW; now fiat wealth, that is World Stocks, VT, is turning lower.

One should dollar cost average an investment into the purchase and possession of gold bullion. Yet for those not so inclined, I recommend an investment strategy of short selling, with these market vane   ETFs, seen in this Finviz Screener, OFF, STPP, HDGE, XVZ, GLD, SLV, JGBS, EUO, HYHG,and SAGG, serving as the margin basis for one’s short selling program. And I would most certainly be short those companies that have acquired a horde of inventory, this includes Alcoa Aluminum, AA.  Zero Hedge Reports Inventory hoarding accounts for near 60% of GDP increase in the past year

John M. Mason writes in late May 2013, in Seeking Alpha, An Age of Deflation? According to research done by Carmen Reinhart and Kenneth Rogoff, published in the book “This Time is Different,” long periods of financial leveraging during a period of credit inflation require a long period of deleveraging to bring things back into perspective. The “legacy” commercial banking system, the financial sector most closely connected to the Federal Reserve, is deleveraging.

Shilling particularly looks at what is happening to the household savings rate to explain why consumer spending may be especially weak in the near future and unlikely to respond to government stimulus.

Furthermore, the position of the United States in the world has changed. We have gone from “hot” wars and “cold” wars to an emphasis on peace. Shilling points to the fact that in years of “war” wholesale prices increase. In peacetime years, they fall. “As the U. S. withdraws from Iraq and Afghanistan and as defense spending declines, peacetime conditions are likely to prevail”

It can be noted at this point that the United States withdrawal from world leadership in foreign affairs and world leadership in economic affairs — as exhibited by the sinking world economy — is the subject of a very interesting new book that I will be reviewing in the next week or so. This book is by Peter Temin and David Vines and is called “The Leaderless Economy.” In this book the authors examine how England, the previous world leader fell from world leadership in the 1920s and 1930s, and how the United States has fallen from world leadership in the present period. It is a very interesting read.

Part of the point of the “fall” in world economic leadership is that more and more countries strike out on their own and currency wars erupt and trade wars erupt.

In periods of prolonged economic pain, notably the global recession of 2007-2009 and the subpar revival that has followed, international cooperation gives way to an every-nation-for- itself attitude that often takes the form of protectionism. Many countries are now pursuing competitive devaluations to spur exports via a cheaper currency and to impede imports.

The bottom line, to me, is that there are many structural imbalances that exist in the world today that must be worked out before we can return to more normal periods of economic activity. These imbalances developed over an extended period of time. They will not be reduced over night. But, the Federal Reserve and other central banks within the world continue to push on. Mr. Bernanke, a world-class scholar of the Great Depression, and other central bank leaders do not want to err on the side of not providing the economy with too little liquidity. Thus, they are throwing all the “spaghetti” they can against the wall to see what sticks. The consequence of this monetary excess may not be to lessen what people need to do to restructure their lives and balance sheets and, hence, get the economy growing faster. The consequence of this monetary excess, I argue, will only work to enhance the income polarization that exists in the United States and elsewhere. There are two effects. The first, mentioned by Shilling, is the increased income polarization that comes about “because higher earners are less likely to spend their money than people with lower incomes. According to the Federal Reserve’s Survey of Consumer Finances, read median net worth fell by 39 percent from 2007 to 2010, yet income polarization caused the mean to fall just 20 percent. ” The other effect: wealthy people can take advantage of what the Fed is doing. Thus, they can, and they are, playing off the Federal Reserve’s generosity.

Liberalism was both a paradigm and an age of investment choice, that featured the investor; it came to an end through the death of fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, by the bond vigilantes steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, and calling the Interest Rate on The US Ten Year Note, ^TNX, higher from 2.48% on October 23, which finally translated death to fiat wealth, that is Global Financials, IXG, Nation Investment, EFA, and World Stocks, VT, on December 2, 2013, when the Benchmark Rate, rose from 2.74%; thus fiat wealth died on December 2, 2013, terminating liberalism.

For centuries, libertarians have desired liberty, specifically freedom from the intervention of the state. In our times Murray Rothbard, followed by Lew Rockwell and Ron Paul have championed free things like free prices; and have called for a sound monetary system, one based upon gold; and have called for a noninterventionist foreign policy. These have decried the pollution of liberalism, that is genuine liberalism, where liberalism is defined as freedom from the state; and weep that liberalism was commandeered by corporatism, globalism, crony capitalism, European socialism, Greek socialism, and communism by the banker regime, specifically the world central banks, as well as by a Dollar Hegemonic Empire, known as the United States of America. 

Genuine liberalism simply was not to be, as Jesus Christ, acting in dispensation, that is in administration of the oversight of God, for the maturing, completion, and perfection of every age, a concept presented by the Apostle Paul in Ephesians 1:10, brought the banker regime to perfection through the combined use of the investment bankers, and the currency traders. Christ’s aim was to reward the investor, via policies of investment choice and schemes of credit and carry trade investing.

Liberalism’s peak prosperity, was the most moral hazard based prosperity that could have possibly been attained, and was achieved on both the pursuit of yield, Junk Bonds, JNK, Ultra Junk Bonds, UJB, Leveraged Buyouts, PSP, and Distressed Investments, FAGIX, as well as investment in currency carry trade investment, specifically, the Euro Yen Currency Carry Trade, that is EUR/JPY, which closed at 140.99. These toxic debts topped out the week ending December 2, 2013, and will not be providing further seigniorage, that is moneyness. The EURJPY topped out at 140.99 and will it also will not be providing further seigniorage, to fiat wealth, that is to Global Financials, IXG, World Stocks, VT, and Nation Investment, EFA.

The failure of sovereignty of the banker regime and the democratic nations states has come via by the bond vigilantes calling the Benchmark rate higher on the US Ten Year Note, ^TNX, from 2.74% on December 2, 2013. The failure of its seigniorage is seen in the stock market turning from bull to bear.

Mike Shedlock reports Spain raids Social Security reserve fund to meet deficit targets, communicating that Spain lacks the national sovereignty to issue Treasury debt, to provide for its fiscal needs. Said another way, Spain is unable to provide seigniorage, that is moneyness, in the traditional sovereign debt marketplace. Spain, EWP, is an insolvent nation, and its bank, Banco Santander, SAN, being loaded to the gills with Spanish Treasury debt, is an insolvent bank. Insolvent sovereigns, and their insolvent banks cannot govern and cannot provide economic growth. And Mr. Shedlock writes Spain’s Bad Bank FROB admits more taxpayer bailouts likely Indeed. Spanish taxpayers are again on the hook for more “support”. But why the announcement now? I can offer three possible reasons.

  1. A genuine recovery is underway, and officials believe they can finally admit the extent of the losses

  2. Officials mistakenly believe a recovery is underway and take this opportunity to disclose losses.

  3. Losses are so big and so obvious, that officials can no longer pretend there will not be additional losses.

My bet is on door number 3, or possibly a combination of door number 2 and door number 3.

If God’s Word of Bible prophecy of Revelation 13:1-4, be true, then out of sovereign insolvency, banking insolvency, and corporate insolvency of the PIGS, that is Portugal, Italy, Greece, and Spain, the beast regime of regional governance and totalitarian collectivism will rise to rule the world in policies of diktat and schemes of debt servitude, producing debt serfs of all. Out of liberalism’s failure and chaos will come authoritarian order, that being a One Euro Government, a European Super State, a United States of Europe with great democratic deficit, establishing a regional economic and political gulag, where the rule of nannycrats provides regional security, stability and sustainability.        

Hossein Askari and Noureddien Krichene ask in August 2010 Asia Times How deep after Jackson Hole?  In his Jackson Hole speech, Bernanke believed that the US economy was suffering from price deflation. According to his reading, inflationary expectations remained low and anchored. Since Bernanke has set interest rates at their lowest level in US history, inflationary expectations, inferred from the term-structure of interest rates, could only be low. However, looking at the prices of gold and other commodities, inflationary expectations could be at their highest level for the post-World War II era.

Bernanke has considered low inflation as a Fed success story and one that affords the central bank hard-earned credibility. While the Fed may trumpet the low level of core inflation its success story, for those who consume cheese, pasta, meat, orange juice, and other food products, there is no success. In fact, they wouldn’t know what the Fed is talking about as the prices of food products have been going up and up. For the average person if this is success, it is success that they could live without. For the Fed to base its credibility on having kept inflation low may be dangerous grounds.

The Bernanke approach is simple, only extraordinary monetary policy can pull the economy out of recession. Similarly, President Barack Obama has set large fiscal deficits as the way to pull the economy out of recession. Thus the foundation of US national economy policy to achieve sustained and significant economic growth is a combination of overly expansionary monetary and fiscal policy. The market mechanism and the private sector be damned, at least for now.

But it is these same policies, adopted since 2001, that have wreaked havoc on the US and the other industrial countries since 2007. The global financial system was saved at the cost of trillions of dollars in bailouts, but with the burden simply shifted from banks to taxpayers, workers, and pensioners.

Increasing government expenditures and deficits to record levels in a bid to restore economic growth can only lead to more intractable economic conditions in the future, where real resources for financing large deficits become limited. In the same vein, forcing extraordinary monetary expansion can only lead to unsafe credit expansion, high inflation, and general bankruptcies. In spite of the unsustainability of these policies, and the resulting economic and financial chaos and misery, it has been near impossible to dissuade policymakers from their super-expansionary path of short-run growth at any cost.

Chairman Bernanke and his supporters have wanted to re-inflate the economy from the outbreak of the crisis in 2007 until now, no matter what the attendant cost. Trying to push housing prices above their boom levels of 2004-2006 and rekindle the housing boom has been sheer madness.

In economics, bygones are bygones. Bernanke and his supporters have not grasped the simple fact that the world of the post-2007 financial collapse was different than that of the housing boom years of 2004-2006. In the boom years, Lehman Brothers and other giant investments banks were riding high; AIG was issuing credit default swaps in trillions of dollars; the securitization process was at its zenith;mortgage guarantors Fannie Mae and Freddie Mac were selling “ninja”-backed securities as hot items snapped by everyone around the world, including China, European banks, sovereign wealth funds, you name them. And yes, Bernie Madoff was the darling of even “sophisticated” investors.

Then it all fell apart. The Fed’s cheap monetary policy intoxicated everyone, which is persistent low interest rates and rapid credit expansion. Some died of intoxication (Lehman Brothers, Merrill Lynch, etc); some had to be rescued at the cost of trillions of dollars; and Madoff was put behind bars. The securitization process basically died.

In the post-2007 era, only fools would buy Fannie and Fred securities or securitized consumer loans. But Bernanke and his supporters still want to restore the housing boom. Their quest is akin to the resurrection of Lehman Brothers. But in 2010, no one is ready for another Bernanke served spell of intoxication. However, by injecting over $1.5 trillion for mortgage loans, it would appear that Bernanke continues to be convinced that he can re-animate the housing boom and thus fuel an economic recovery.

It would appear that convincing politicians to renounce distortions and let the housing market adjust to a different environment, and importantly with much lower prices than those prevailing in the boom years, is as difficult getting an alcoholic to give up alcohol. If the housing market had been allowed to adjust freely in 2007, the housing crisis would have been much briefer and construction industry may have already recovered.

Chairman Bernanke has all along claimed that he had the tools for boosting economic recovery. It is not clear why he did not deploy all the required tools a long time ago so that full employment could have been already restored. With credit at 350% of gross domestic product and banks still suffering losses, conditions for a credit boom are not there, irrespective of near-zero interest rates across the term-structure. Much of the Fed actions amount to only intensification of distortions – flooding the financial system with money, flaring up speculation, redistributing wealth in favor of borrowers, and impoverishing workers.

New round of quantitative monetary easing may only further deepen the economic crisis as the super-easy monetary policy followed by Bernanke since 2002 has so far produced only financial disorder and economic agony. Bernanke’s classroom model predicted that low interest rates and money printing would bring economic prosperity and full employment.

This has not been born out by the facts. It has, however, resulted in a short-lived boom followed by the worst post-World War II crisis, a crisis that continues with no end in sight.

I relate that the monthly chart of the Hot Seven Investments, that is IPOs, FPX, Consumer Services, IYC,  Small Cap Pure Value, RZV, Small Cap Pure Growth, RZG, Nasdaq Internet, PNQI, Pharmaceuticals, PJP, Spin Offs, CSQ, shows they have all risen parabolically higher since the 2008 Financial Crisis. The chart of Gold, GLD, with these Hot Seven ETFs FPX, IYC, RZV, RZG, PNQI, PJP, CSD, communicates that the insiders began to sell Gold short and go long the Hot Seven.

The Ben Bernanke Put, initiated Global ZIRP in August, 2013. It set the banker regime totally free in wildcat finance, a Doug Noland term, to waive magic wands of debt and currency carry trade investing, in the riskless trade, to provide investment choice.  Immediately after the Jackson Hole Speech, the insiders went short Gold, GLD, and long a combination of debt, Ultra Junk Bonds, UJB, and the Euro Yen currency carry trade, EUR/JPY, to leverage the greatest moral hazard results possible, as is seen in the combined ongoing Google Finance chart of Gold GLD, Ultra Long Euro, ULE, Ulta Short Yen, YCL, and Nation Investment, EFA, such as  EWA, EWZ, EZU, VTI, NKY, and YAO.  

All praise, glory, and honor to Jesus Christ, for bringing forth the Creature from Jekyll Island to reward the wily investor, who worked within its policies of investment choice and credit schemes of debt trade and currency carry trade investing. As revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is establishing a new order consisting of fifteen New Things in Christ, on October 23, 2013, by releasing the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse.

The first of the new things was the death of fiat money on October 23, 2013, as the bond vigilantes called the Interest Rate higher on the US Ten Year Note, ^TNX, from 2.48%, which consummated the death of fiat wealth, that is Global Financials, IXG, Nation Investment, EFA, and World Stocks, VT, on December 2, 2013, when the bond vigilantes called the Benchmark Rate higher form 2.74%.

Inasmuch as the Fed’s money, and its effect, that is fiat wealth, be dead, the Fed, and its monetary policies must be dead as well. The debt trade, seen in Junk Bonds, JNK, and Ultra Junk Bond, UJB, and the currency carry trade, seen in the EUR/JPY, both topping out on December 2, 2013, means that although tapering may not begin right away, fiat wealth, that is stocks will forever be plummeting lower in value. Most assuredly the US Dollar Hegemonic Empire died December 2, 2013.

As seen in Daniel’s Statue of Empires, Daniel 2:25-45, the Two Feet Kingdom and Ten Toed Kingdom, having a miry mixture of regional governance and totalitarian collectivism, a very unstable and non-adhering combination, will eventually, that is years out crumble. Nevertheless, this Beast, presented in Revelation 13:1-4, is now rising from waves of crisis in the Mediterranean Sea States of Portugal, Italy, Greece, and Spain. And it is described in Daniel 7:7 as “beastly, dreadful and terrible, exceedingly strong; it has huge iron teeth; it’s devouring, breaking in pieces, and tramples the residue with its feet. It’s different from all the beasts that were before it, as it has ten horns”.

This will be the seventh revived Roman Empire. Six have come and gone. These were led by Justinian, Charlemagne, Otto the Great, Charles V, and Napoleon, with the sixth revival culminating in Hitler and Mussolini. Marcus Hochstadt of My German City brings us up to date, the main event in post war German history would have to be the fall of the Berlin Wall on November 9th, 1989 and the following official German reunification on October 3rd, 1990 (a national German holiday). After 45 years of separation, Germany was united as one nation once again.The final Roman Empire will rise from the center of Europe, that being France, with its military exploits in Africa, and Germany, with its banking supervision operated out of Frankfurt.

There is waiting in Europe’s wings, one who will revive the power of Charlemagne, with its universalizing policies of Carolingian spirituality, coming through the cosmological theology of the Star Sapphire, and geomancy, based upon the sixteen geomantic figures.

Soon the curtains will open; and into the limelight will step the Sovereign of Revelation 13:5-10, who will be accompanied to power by the Seignior of Revelation 13:11-18, the monetary and fiscal top dog, who in coining diktat money, takes a cut. Their combined word, will and way will replace all constitutional, and national history law, as they direct in policies of regional government, and in schemes of debt servitude of totalitarian collectivism, producing debt serfs of all.

I fully expect the Sovereign to return to Charlemagne’s capital of Aachen, the spiritual and political capital of Western Europe years ago, specifically to Aachen’s Cathedral, which is one of the most important buildings in the world, and there receive the Charlemagne Prize of Aachen, the oldest and best known prize awarded for work done in the service of European unification. The Cathedral contains some precious relics including Jesus Christ’s loin cloth and Mary’s cloak, Tom Rayner, writes.   

As a matter of record, the Holy Roman Empire started in 800 AD when Pope Leo III crowned Charlemagne the emperor of the Holy Roman Empire. Its power ran with the imperial title of Charlemagne ruling sovereign until as zxav3964wy relates The Tudor Origins Of The British Empire.  The British identity was developed as an ideology around the court, Brythonic communities under the English crown had their political and cultural autonomy eroded. Firstly Welsh Law was harmonised with that of England through Henry VIII’s Laws in Wales Acts passed between 1535-1542. Then in 1549, the Duke of Somerset led an army to impose the English language Common Prayer Book on the Cornish speaking inhabitants of Cornwall. This reflects the change in the way people thought of and related to these materials. In the Low Countries and England the merchant class had been emerging as a powerful force since the Fourteenth Century. They were developing what came to be called “Bourgeois society” and the economic system known as capitalism. Part and parcel of this was the development of the nation state, a canon of national literature, an increase in grammar schools, as the former Cathedral Schools were largely swept away with the dissolution of the monasteries. The impact of printing, along with the bible reading which was an essential part of protestantism, ensured that there was a spread of literacy and that people developed new ways of relating to written texts.  

 

3) Genuine economic growth and sustainable wealth cannot be built on cheap money. Edward Harrison of Credit Writedowns posts Liberalism Thought Leader Larry Summers Summers: History will overwhelmingly approve QE. Below is a video interview Larry Summers conducted with Bloomberg Television. We provide the partial transcript without comment.

The debasement of the US Dolar has inflated economic growth and fiat wealth. The debasement process was the engine of inflationism which produced peak fiat wealth on December 2, 2013. By going off the gold standard in 1971, the world central bankers bankrupted the world.

Detlev Schlichter of Paper Money Collapse writes The separation of state and money The global financial system got unhinged. After four decades of persistent inflationism we have an overstretched finance industry gravely addicted to the constant drip-feed of cheap money and an out-of-control public sector constantly issuing debt that will never get repaid.

The gold standard was abandoned, in a step-by-step process that began around the time of World War I and that culminated in Nixon’s closing of the gold window in August 1971. For more than 40 years, gold has played no official role in global monetary affairs. State paper money ruled. Everywhere. This was the era of the central banker, the monetary bureaucrat, of artificially cheap credit, of stimulus, of big equity rallies, of bigger real estate bubbles, of constant debasement, of the quick buck and the big bonus, of growing banks and of ever more sovereign debt. The global financial system got unhinged. After four decades of persistent inflationism we have an overstretched finance industry gravely addicted to the constant drip-feed of cheap money and an out-of-control public sector constantly issuing debt that will never get repaid. There is no painless exit. The cleansing crisis is inevitable. Simply being honest about the mess we are in would not be a bad starting point for policymakers. And to acknowledge that this can’t go on forever. It certainly won’t go on forever. The aim of my book Paper Money Collapse was to expose widespread fallacies and debunk erroneous common wisdom concerning money. It was not to provide a program for reform. Let us separate state and money completely.

There will never ever be a separation of state and money; state will claim the power to define money.  With the failure of fiat money on October 23, 2013, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, as well as a failure of fiat wealth, on December 2, 2013, dikat money is emerging as a tool of the state for regional security, stability and sustainability. Under liberalism one had life experience as an investor; under authoritarianism one has life experience as a debt serf.    

The call of the bond vigilantes in steepening the 10 03 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, and in calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, terminated fiat money; and higher from  2.74% on December 2, 2013, terminated fiat wealth, utterly ending the sovereignty of the banker regime and democratic nation state democracies, and introducing the rule of the beast regime.

Liberalism was a life experience in banker’s puts (ie the Bernanke Put and the Draghi Put) and calls (ie the bond vigilantes calling the Benchmark Interest Rate higher, and the currency traders calling the EURJPY higher).

Authoritarianism is a life experience of nannycrats mandates (ie The Troika’s diktat in Greece, and confiscations, as Arnold King writes).      

The call higher of the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, pivoted the world from the paradigm and age of liberalism … and into … the paradigm and age of liberalism, where nannycrats engage in wildcat governance, waiving clubs of regional governance and totalitarian collectivism, to enforce debt servitude.  

US to backstop regional security, as regional powers grow in capability. BBC reports US military power must back Iran nuclear deal, Hagel says. And Reuters reports Obama defends interim Iran deal, seeks to assure Israel.  In related news, Breaking Defense News report Forbes champions more Super Hornets; Boeing’s  F-18 Vs. Lockheed Martin F-35, Round two

To fully separate one’s economic life experience from the state, one needs sovereign wealth equivalent to that of diktat money, that being the physical possession of gold bullion and silver coins as  SRSrocco Report relates 5 charts: the real story behind silver; and as Michael Noonan writes in Safehaven Silver – Letting The Market Speak

 

4) Will the international trade regime survive in the age of regionalism?

IISD.org provides The basics of the WTO The foundations of the international trade regime date back to 1947 when the General Agreement on Tariffs and Trade was concluded.

Mario Telo’, asks via Vimeo, Stronger or weaker? The EU in the age of regionalism. The Jean Monnet Chair ad personam at the Université Libre de Bruxelles; Vice President of the Institut d’Etudes Européennes;and Professor at LUISS Guido Carli University, comments on the evolution of the EU’s global role due to the rise of new regional powers. He joined  the Executive Briefing Conference “New Regional Powers: What Role for Europe?” organized by ISPI in Rome on May 20,

Liberalism was the age of globalism and corporatism. An inquiring mind asks, Will the international trade regime survive in authoritarianism’s age of regionalism? Outside of the Eurozone, growing “customs unions” based on regional multilateral trade agreements will be the way forward in undollar economic transactions, leading to the Beast’s rule regional governance and occupation in totalitarian collectivism. S. Rajaratnam wrote in visionary 1992 document  ASEAN The way ahead.

Think Tank CFR talking head Mohammed Aly Sergie writes The WTO.  The rise of new bilateral and regional free-trade agreements with the continued impasse at the WTO could further weaken negotiations as countries review offers that were already on the table. Additional trade agreements complicate global commerce by creating a “‘spaghetti bowl’ of multiple tariffs depending on the source of a product and, in turn, a flood of rules of origin to determine which source is to be assigned to a product,” writes CFR Senior Fellow Jagdish Bhagwati in Foreign Affairs (cited in a Congressional Research Service report).

 

5) Southern Turkey and Syria is becoming ground zero for Islamist liberation.  

BBC reports Syria Conflict: Foreign Jihadists Use Souher Turkey Safe Houses. The route through Turkey used by al-Qaeda-linked foreign jihadists is now becoming increasingly organised.

Opposition activists say jihadists are destroying the Syrian revolution.

The man in charge of the safe house near Reyhanli told the BBC’s Richard Galpin that “more than 150 people stayed at the house” in the past 90 days. “Between 15 and 20 were British. It’s all done through invitations from friends”.He added that jihadists usually “stay for a day or two before crossing into Syria and stay on the way back when they are waiting for flights back to their home countries”.

One such fighter from France told our correspondent that “there are thousands of us, literally from every corner of the world” … “And we are all al-Qaeda,” he added.

The jihadist, a former student in France, said he had joined a brigade which had 8,000 men.

He added that the brigade had recently pledged allegiance to the radical Islamist organisations called the Islamic State of Iraq and Greater Syria.

Over the past year, thousands of foreign fighters – including about 300 British nationals – have poured into Syria to fight President Bashar al-Assad’s forces.But Syria’s original armed opposition say the jihadists are not just fighting the regime but are also systematically targeting Free Syrian Army fighters. A former FSA commander said he had to flee to Turkey after his unit had been captured by jihadists.

 

6) Authoritarianism is characterized by economic recession.

On December 6, 2013, the bond vigilantes continued steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner, ETF, STPP, steepening, and continued calling the Benchmark Interest Rate, ^TNX, higher, from 2.74%, on the exhaustion of the world central banks monetary authority, which caused both the failure of credit growth, AGG, and currency growth, DBV , CEW, and which finally caused the failure of wealth growth, VT; these three failures are the “genesis factors” for a three things: 1) a sharp stock market sell off. 2)  a sharp economic recession. 3) a credit bust and financial system breakdown.

The bond vigilantes actions of December 6, 2013, in steepening and calling, constituted an “extinction event”, that terminated liberalism’s life experience as one being an investor with choice, and introduced authoritarianism’s life experience as one being a debt serf living in debt servitude, and pivoted the world from the age an paradigm of liberalism into that of authoritarianism.      

The world passed through peak prosperity the week ending November 29, 2013, on the rise of the Interest Rate on the US Ten Year Note, ^TNX, from 2.74% on December 2, 2013.

Fiat money, that is Credit, AGG, and Major World Currencies, such as the Australian Dollar, FXA, and the Euro, FXE, and the Japanese Yen, YEN. as well as Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, is dead, and the world central banks that that print the money, such as the US Fed be dead, with the result that dynamos of globalism and corporatism that fueled economic systems of crony capitalism, European Socialism, and Greek Socialism, be dead as well. One hundred years of US Federal Reserve central bank interventionism, ended December 2, 2013, terminating 100 years of rule by the Creature from Jekyll Island.  Now the beast regime of regional governance and totalitarian collectivism is rising in its place. Worldwide economic recession can be the only outcome of the failure of fiat money, and the failure of fiat wealth.

Investors no longer trust that the banker’s monetary policies will support global economic growth and global trade. Global GDP, and national GDP, will be falling on the failure of fiat money, that is on the failure of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW. The Creature From Jekyll Island is being replaced by the beast regime of regional governance and totalitarian collectivism, as foretold in bible prophecy of Revelation 13:1-4.  

With the rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48 % on October 23, 2013, Jesus Christ opened the First Seal on The Scroll Of End Time Events, and released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, who rule in authoritarianism with regional governance policies of diktat. and totalitarian collectivism schemes of debt servitude. Nannycrat rule will make claim of personal property, establishing  regional property and regional property rights, as superior to personal property rights, and regional economic activity superior to national economic activity.

Liberalism featured the dynamos of corporatism, globalism, clientelism, European socialism, and Greek socialism, which established global growth and global trade, as the banker regime’s policies of investment choice and schemes of credit and carry trade investing, underwrote inflationism, providing economic growth, that is economic expansion, all to establish investment choice for the investor.    

Authoritarianism features the singular dynamo of regionalism, which establishes regional integration, as the beasts regime’s policies of diktat and schemes of debt servitude, underwrite destructionism, providing economic recession, that is economic deflation, all to establish regional security, stability and sustainability.

On May 1, 2013, the bond vigilantes called the Interest Rate on the US Ten Year Note, $TNX, higher from 1.63, commencing an Elliott Wave 3 Up Wave in the Benchmark Interest Rate. The Third Wave is the most sweeping of all economic waves as it alternatively creates or destroys the bulk of all wealth on the way up Its Crest at the Top of Wave 5. In this case the wave will create wealth for those owning Interest Rate Swaps, that is primarily the US Fed primary dealers, and destroys the investor’s Stock Wealth, VT.    

On December 6, 2013, the final phase of the business cycle, known as Kondratieff Winter, commenced at the hands of the bond vigilantes, where recession operates via monetary deflation, that is the fall lower in the value of money, as well as the accumulation of money, like the pile of M2 Money, dwindling lower in nominal value, from its peak of 10,988 on 10-21-2013 to 10,934 as of 11-25-2013, and investment deflation, as investors derisk, as is seen in the Risk Off ETN, OFF, rising in value, a sharp stock market sell off, a sharp economic recession, then an all out credit bust and financial system breakdown.

Tapering, that is, further US central bank monetary stimulus, cannot help and will not help; further monetary stimulus will only strengthen the hand of the bond vigilantes who have been calling the Benchmark Interest Rate, ^TNX, higher since October 23, 2013, as the policies have crossed the rubicon of sound monetary and have made “money good” debt, and “money good” currencies, and now “money good” fiat wealth, that is World Stocks, VT, bad.

Writing in Zero Hedge, Asia Confidential posts Why Japan may matter more than tapering. Japan is likely to launch even more QE in early 2014 and a much lower yen may result. That’ll have dramatic consequences, perhaps greater than US tapering.

Deflation leads consumers to delay purchases in anticipation of ever lower prices, undercuts corporate profits, causes companies to cut back on their product offerings, close marginally efficient plants, stop investing in new plants and equipment as well as technology, cease research and development, lay off employees, and put remaining employees on part time employment status.

Liberalism featured evolution; but authoritarianism features devolution from civilization into barbarism, as seen in the keyword search Barbarism in Ask Blog.  Under authoritarianism, economic recession is a chronic, crushing condition, causing some to actually die of emotional depression, despite the encouragement of physicians to take antidepressants. Economic recession causes love to grow cold, resulting in the rise of psychopaths and psychopathic behavior: many will become mean and crazy individuals.        

Elaine Meinel Supkis writes that the new normal weather is Ice Age Cold, as there has been a sudden climate change, ending liberalism’s Global Warming, Ice Age Cold Suddenly Grips North America Continent.  She writes “The cold extends into Mexico so it isn’t local”, referencing the USA Today report Snow, ice, deep-freeze hit large swath of USA.  I live in Bellingham, WA, where the map shows 16. I use to live in Denver where the map shows 2 and hated the winter blizzards, so I moved as far north and as far west as I could, to live in a pleasant marine cove climate in 1999: I now reside in the City of Subdued Excitement.   

Ms Supkis relates The climatologists who have harangued us all Fall about global warming are silent about this burst of Ice Age weather. 

This is quite cowardly of them.  They have yet to explain why we suddenly, the same year the sun had very low sunspot activity, this is happening.  The one element that can suddenly change the temperature or storm patterns is our sun, the supreme controller of our climate.  Way back in the 1970′s when the sun grew quiet and fears of Ice Ages rose higher, scientists discovered that all Ice Ages began very suddenly, not slowly.  Instead of over thousands of years or even hundreds of years, it is suspected these events begin in a few seasons.  People are dying due to this severe cold.  The above map doesn’t show how extreme the cold will be for those of us living in the Northeast.  It will be at zero up here on my mountain midweek.  The cold extends into Mexico so it isn’t local.  How many severe cold waves do we have to have before the global warming people admit the sun has a very central and powerful role in climate?

The supposition that global warming would cause severe cold has to be tossed out.  During eras of warm climate in the geological past, it wasn’t simultaneously extremely cold.  It was warm…all the time.  So swamp trees grew in Alaska 65 million years ago and camels grazed there 6 million years ago when Alaska was near the North Pole.  The Ice Ages is this very sudden change in climate.  It happened in recent geological history, is barely 2.5 million years of violent see-saw in climate and we humans evolved due to this stressful on/off cycle of hot/cold. Temperature extremes are a key element in the new Ice Age instability cycle.

In conclusion, the death of fiat money, on October 23, 2013, and the death of fiat wealth, on December 2, 2013, are the “genesis factors” of three things: 1) a sharp stock market sell off. 2) a sharp economic recession. And 3) a credit bust and financial system breakdown.

Jesus Christ, in Opening of the First Seal on the Scroll, seen in Revelation 6:1-2, on October 23,2013,     released the Rider on the White Horse; it was a Prometheus Action as To create, one must first destroy. The banker regime is being destroyed by the First Horseman’s actions, then come the other Three Horsemen of the Apocalypse, seen in Revelation 6:1-8, to build the beast regime’s power as it destroys all vestiges of liberalism.

The Death Of Fiat Money Will Be The Cause Of Worldwide Recession … And Will Be The Genesis Factor Of Both A Global Financial System Crash And The Rise Of Trust In Regional Governance

December 1, 2013

Financial Market Report for the Week Ending November 29, 2013Dear

Dear Reader: One may have a better reading experience by  using the Google Drive presentation of this article found here.

1)  … Previously on Friday, November 22, 2013, Jesus Christ working in dispensation, that is the economy of God, was seen producing liberalism’s peak fiat wealth.

The dispensation economics manifest presents the concept that Jesus Christ, as the Heir of God, has been appointed with dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, where He is to mature and perfect every age, much like a ship’s captain completes the ship’s manifest before setting sail.

Under liberalism, fiat wealth investments were inflated via central banks policies of investment choice, and schemes of credit and carry trade investment, based upon the sovereignty of democratic nation states, such as the US, VTI, and the UK, EWU, and their Treasury Debt, TLT, and BWX.  Zero Hedge reports The S&P Closes Above 1800, Posts 7th Consecutive Weekly Increase: Longest Streak Since 2007.  It’s likely that Friday November 22, 2013 was the completion of the Creature From Jekyll Island’s, the ECB’s LTROs  and OMT’s, and PBOC’s, monetary stimulus. Thus completing a regulatory capture, clientelism and crony capitalism, as well as a European Socialism, and Greek Socialism, and Chinese Communism, fiat wealth experience, that came through moral hazard based investing. Certainly the financial market rally is getting “long in the tooth”

One of liberalism’s most terrifically inflated fiat investments is UK based Prudential Life Insurance, PUK, which has risen 450% in the last five years; its seigniorage, that is its moneyness, has come through trust in the long term debt that it has invested in. Another example of terrifically inflated fiat investments include 3M Co, MMM, and Rite Aid, RAD, whose values have risen parabolically since the 20008 Financial Collapse. And likewise the Small Cap Growth Stocks, RZG, such as CLW, KWR, HEES, and BDC, the Nikkei, NKY, and China, YAO, rose on money coming out of Bonds, BOND, as well as on currency carry trade investing.

With the rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48 % on October 23, 2013, Jesus Christ has opened the First Seal on The Scroll Of End Time Events, and has released the First Horseman of The Apocalypse, Revelation 6:1-2, the Rider on the White Horse, who has a bow, yet no arrows, symbolizing his ride over the world, to effect a bloodless global coup d’état, to transfer sovereignty from nation states to regional nannycrats and regional bodies such as the ECB, who will rule in regional governance policies of diktat. and totalitarian collectivism schemes of debt servitude.

Beginning on October 23, 2013, the strong rise in the Interest Rate on the US Ten Year Note, ^TNX, and the steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, has destroyed yield bearing investments such as Utilities, XLU, Real Estate, IYR, DRW, and had destroyed currency carry trade investments in the Emerging Markets, EEM, and their banks, such as BRAF, and EPI, in Brazil, EWZ, in Thailand, THD, and in its investment twin, Philippines, EPHE, and in Australia, EWA, KROO, ENZL, its bank WBK, and iron ore miner BHP.

As nations lose their sovereignty to the bond vigilantes and the currency traders through debt deflation, the Interest Rate on the US Ten Year Note, ^TNX, is going substantially higher, further destroying fiat money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, stimulating investors out of Stocks, VT, and creating an investment demand for gold bullion.

In the age of authoritarianism, there are only two forms of sovereign wealth, and sustainable wealth, these being diktat, and the physical possession of gold bullion. As of November 22, 2013, the price of Spot Gold, $GOLD, traded by the ETF, GLD, fell to $1,242, which is the cash price of production for a number gold producers; thus a bottom has been established for gold.

2)  … Booms are always followed by a horrific bust; such is the nature of the business cycle; the final business cycle will see the rise of ten regional kings to rule in the world’s ten regions.

The world is entering Kondratieff Winter, the final business cycle. The death of fiat money means monetary deflation, CPI Deflation, as well as Wage Deflation, and is the genesis factor for both intense global recession and the rise of beast regime of regional governance and totalitarian collectivism, presented in Revelation 13:1-4.

Out of turmoil of EU soveign insolvency, banking insolvency, and corporate insolvency,such as the tremendous swell in France as reported by Mike Mish Shedlock, will come unifying economic and political leadership. There is waiting in the wing’s of Europe’s stage, one who will soon step into the limelight, one who will work in regional framework agreements to provide order out of chaos. The Sovereign, Revelation 13:5-10, and his partner, the Seignior, Revelation 13:11-18, the top dog money lord who in coining money, takes a cut, will rise to power in the EU, to become the world’s preeminent king. The Seignior will create goodwill, that is create “good face”, for the Sovereign, and his rule over the Eurozone. Alexis Tsipras, the leader of Greece’s far-left SYRIZA party and a candidate to European Commission Presidency, writes in the Guardian, The Left Can Unite To Build A better Europe.  “For millions of people, the European dream has turned into a nightmare. Eurobarometer surveys show the growing crisis of confidence in the EU and the catastrophic rise in the popularity of far-right parties” … “ Austerity is wreaking havoc, It is our destiny to fight back”.

When the currency traders call the EUR/JPY lower from its Friday November 22, 2013 value of 137.43, as bond vigilantes call the Interest Rate on the US Ten Year Note, ^TNX, consistently higher from 2.75%, then World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, the Eurozone, EZU, and European Financials, EUFN, will tumble like a house of cards, with the result that there will be terrible economic recession, with a grievous epicenter in France and the PIIGS, that is Portugal, Ireland, EIRL, Italy, EWI, Greece, GREK, and Spain, EWP, and a falling rate of wage inflation in the US, seen in FRED AHETPI, trending lower, as employers simply won’t be able to continually highly  reward their laborers.

Reporting from Open Europe reports that Greece and Ireland have been the test beds for evolving Eurozone regional economic government.  Now with regional nannycrats having pooled sovereignty, in particular the sovereignty of diktat in regional governance, and in providing seigniorage schemes of debt servitude in totalitarian collectivism, such as exercising budget powers in demanding more austerity in Italy and Spain, regionalism will be the dynamo of economics, with the aim of establishing regional security, stability, and sustainability, to counter national economic recession.

Germany is pressing for Eurozone leadership. Open Europe publishes The First English Translation Draft Of The German Grand Coalition Agreement. The draft agreement states that the way out of the eurozone crisis is to “combine structural reforms and a strict, sustained continuation of budget consolidation.” The coalition will also be committed “to ensuring that the euro countries agree binding, enforceable and democratically legitimised contractual reform agreements at the European level.”

Authoritarianism features regional framework agreements, that is policies of diktat in regional governance, based upon regional fiscal sovereignty, and schemes of debt servitude in totalitarian collectivism. Open Europe reports Eurozone Reform Contracts Take Shape, And They Include Fiscal Transfers.  A profound change in the nature of government and moneyness is emerging. Regional government, not democratic nation states, is sovereign. And regional nannycrats, not banks and financial markets, provide seigniorage, that is moneyness.  Yes, diktat policies of regional governance and fiscal and debt servitude schemes of totalitarian collectivism, is the EU’s future.

Open Europe news reports FT  WSJ  FAZ  FAZ 2  Süddeutsche  Bild  Welt  Welt 2  Guardian: Posener clearly evidence that the beast regime of regional governance and totalitarian collectivism, with its seven heads occupying in each of mankind’s seven institutions, and its ten horns ruling in the world’s ten regional zones, presented in Revelation 13:1-4, is rising from sovereign, banking and corporate insolvency, and is making landfall in the Eurozone, occupying with feet of a bear in EU banking supervision in Frankfurt Germany; with mouth of a lion in NATO headquarters in Brussels; and camouflage of a leopard in ongoing technocratic governance in Greece as well as in ECB banking supervision from Berlin, and in nannycrat fiscal rule from Brussels enforcing budget rules demanding more austerity in Spain and Italy.

Liberalism was characterized by monetary inflation, and it fueling economic growth and global trade, where the banker regime financialized nation state fiat money. And Sober Look posts in Credit Writedowns Five Years Of QE And The Distributional Effects.  Who really benefited since the first QE was launched? There is a great deal of debate on the topic, but here are a couple of facts. Financial asset valuations, particularly in the corporate sector have seen sharp increases. For example the S&P 500 index total return (including dividends) has delivered 144% over the 5-year period. Those who had the resources to stay with stock investments were rewarded handsomely .The housing recovery has certainly been helpful (for those who kept their homes), but according to the S&P Case-Shiller Home Price Index, US housing is up less than 5% over the past five years.

But with the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, and economic recession coming from the failure of Credit, AGG, and Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging market Currencies, CEW, such as the Brazilian Real, BZF, becoming the norm worldwide, these two forces (higher interest rates and economic recession) are the genesis factors for authoritarianism beast regime’s rise to power in regional integration, to establish regional security, stability, and sustainability.

Liberalism’s seigniorage, that is its moneyness, came via policies of credit, such as POMO, and carry trade investment, such as the EUR/JPY juicing up World Stocks, VT, and risk assets such as Small Cap Pure Growth, RZG, Small Cap Pure Value Stocks, RZV, Nation Investment in Ireland, EIRL, its bank, IRE, and its companies, such as Seagate, STX, and Ingersoll Rand, IR, greatly rewarding investors.

Authoritarianism’s seigniorage comes in mandates of all kinds, such as in EU banking supervision, and in EU fiscal spending rules, and will result in a full fledged banking union, fiscal union, and economic union, where nannycrats exercise power in regional framework agreements to oversee the factors of production, commerce and economic trade, to establish regional security, regional stability, and regional sustainability. While the Nordics, such as the Germans, the Dutch, and the Belgians will never be Latins, such as Greeks, the Spaniards and the Italians, all those living in Euroland will be one, living in a regional gulag of debt servitude, under the word, will and way of the Sovereign and the Seignior. The EU periphery will exist as hollow moons revolving around planet Berlin and planet Brussels.

The soon coming European Superstate comes from the concepts of the Euro’s Father, Columbia University Professor Robert Mundell, who received the 1999 Nobel Prize in Economics for his 1961 paper “A Theory of Optimum Currency Areas”, as cited by EconoLib.org and other internet resources.

The US Federal Reserve finally crossed the rubicon of sound monetary policy; the result was the failure of the US Fed money printing operation is seen in M2 Money trending lower. The US Federal Reserve site shows M2 Money peaked on 10-21-2013 at 10,988, Billion, and has been trending lower: 10980, 10974, and now 10922. Just like fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, died on October 23, 2013, M2 Money died when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.

The bursting of the fiat money bubble, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, will result in a new form of money, that being diktat money, where the components of M2 Money, such as savings accounts, will be placed under capital controls and under transfer restrictions, and the factors of production, commercial businesses as well as trading organizations, are overseen by regional monetary and economic cardinals, that is regional nannycrats, working in statist public private partnerships and workgroups to establish regional, security, stability, and sustainability in response to economic recession, and CPI deflation, and monetary deflation, that is the fall lower in the value of money, as well as the accumulation of money, like the pile of M2 Money, dwindling lower in nominal value. Ludwig Von Mises, wrote of the new order in Planned Chaos,

“There are two different patterns for the realization of socialism. The one pattern, we may call it the Marxian or Russian pattern, is purely bureaucratic. All economic enterprises are departments of the government just as the administration of the army and the navy or the postal system.”

“The second pattern,we may call it the German or Zwangswirtschaft system—differs from the first one in that it, seemingly and nominally, maintains private ownership of the means of production, entrepreneurship, and market exchange. So-called entrepreneurs do the buying and selling, pay the workers, contract debts and pay interest and amortization. But they are no longer entrepreneurs. In Nazi Germany they were called shop managers or Betriebsführer. The government tells these seeming entrepreneurs what and how to produce, at what prices and from whom to buy, at what prices and to whom to sell. The government decrees at what wages labourers should work, and to whom and under what terms the capitalists should entrust their funds. Market exchange is but a sham.”

Shaun Richards asks pessimistically in Mindful Money What Options Are Left For The European Central Bank?  The ECB faces a potential growth slowdown which when we consider is supposed to be in an economic recovery phase (after another recession) must disappoint it. Added to this are the recent signs of divergence in the Euro area with Germany living up to the locomotive stereotype but France and Italy left behind in a siding. So all the signals are green for further easing as  the latest 0.25% interest rate cut was as much for media spinning as for any likely real impact on the situation.

Today’s data from Spain only confirmed the disinflationary drumbeat of these times.  The annual rate of the Industrial Price Index stands at –0.2%, three tenths over that registered in September   The monthly variation rate of the Industrial Price Index is –0.6%.  We get an idea of the change in the situation here if we note that the annual rate of change was 3.9% in October 2012. We can add to this by noting that in September producer prices in Italy were falling at an annual rate of 1.8% and in October they were falling at an annual rate of 1.6%. Even Germany saw this. In October 2013 the index of producer prices for industrial products fell by 0.7% from the corresponding month of the preceding year. Indeed wholesale prices in Germany were falling at an annual rate of 2.7% in October.

The international agreement over Iran and its nuclear ambitions has seen the price of a barrel of Brent crude oil drop by nearly 2% this morning to around US $109 per barrel. Actually it has been at this sort of level for a while now which is part of the issue as the Euro has strengthened by 4% over the past year. So cheaper oil is good for economic growth but also generates disinflationary pressure.

John Mauldin communicates concepts of EU CPI deflation, monetary deflation, and economic recession in Thoughts From The Frontline PDF report Game of Thrones – European Style. Key measures of inflation are decelerating across the Eurozone, and the region is as close as it has ever been to a deflationary bust. It’s troubling enough that Eurozone headline CPI collapsed from 1.1% in August to 0.7% in September and that core CPI fell from 1.0% to 0.8% over the same period; but measures of EU money supply (M1, M2, & M3) are also decelerating rapidly, suggesting that the deflationary trend will most likely continue without decisive action from the ECB, which has been strangely absent from the current rush by central bankers to print mountains of money.

There are two major problems associated with an extended period of ultra-low inflation or deflation in the Eurozone.

First, peripheral countries will have a much harder time servicing and retiring their debts without the extra boost to nominal GDP that positive inflation provides. Even if you are working on lowering the absolute amount of your debt, it is impossible to improve your debt-to-GDP ratio when GDP is falling and your debts are growing. Moreover, outright deflation works to crush debtors (and debtor nations) by increasing the real weight of the debt and triggering the destructive debt-deflation cycle described in Irving Fisher’s Debt Deflation Theory of Great Depressions (1933).

The second major problem is that currency appreciation always accompanies deflation, all else being constant, so that affected economies also become less competitive in terms of exports at the very moment that a positive trade balance is most important.

These are problems that I have written about for years. The effects of a common currency and monetary policy are spread around very unevenly in Europe, creating a boom in certain countries (chiefly Germany) and a sad bust in others. This disparity is the very predictable result of a currency union sans fiscal union. And trying to fix the Eurozone fiscal structure after the fact is akin to fixing the engine of an airplane while flying at 30,000 feet.

The rapidly weakening inflation we are seeing in Europe is a very big deal, because deflation can become a chronic, crushing condition, making it even harder to deal with excessive debt, under capitalized banks, and runaway fiscal deficits in major countries like Spain, Italy, and France. Over time the masses begin to expect falling rather than rising prices, and these expectations can be very difficult to reverse without credible, decisive, and powerful action from the central bank.

Up to this point, the ECB has been almost completely unwilling to squarely confront the issues at hand. The ECB balance sheet has been inexplicably shrinking for the past year (more on that in a moment). That is why ultra-low inflation readings should not come as a surprise. Not only has the ECB not been easing, it has actually tightened its balance sheet considerably over the past year. To many observers, this trend clearly demonstrates German dominance within the ECB. ECB restraint has kept the euro entirely too strong, at least for certain countries in the EZ, again showing the dysfunctionality of the common monetary union. A 2013 study from Deutsche Bank says the “pain threshold” for the EUR/USD exchange rate (the level at which further appreciation impairs competitiveness and economic recovery) is $1.79 for Germany, $1.24 for France, and $1.17 for Italy.

Shown against the current EUR/USD exchange rate, the “pain thresholds” make it obvious that Germany is sitting pretty while France and Italy are getting crushed by the strong euro. Although Spain shows a higher threshold than Germany, gains in Spanish competitiveness are really attributable to mass unemployment and a major fall in unit labor costs. Spain has already taken a tremendous amount of pain, while France and Italy are just starting to absorb theirs. Arnaud Montebourg, French industry minister, claims that each 10% rise in the EUR exchange rate costs France 150,000 jobs, and the trade-weighted EUR index has risen by 9% in the past 15 months. The strong euro is inflicting damage on the textile industry and other low-margin sectors across Southern Europe. As Ambrose Evans-Pritchard notes, “Any policy set at this stage for Club Med needs is destructive for Germany, and any policy set for German needs is destructive for Club Med. You cannot set a workable policy. The intra-EMU gap is already too wide.”

The European landscape has changed so that Germany is benefiting at the periphery’s expense and the uncompetitive periphery is losing major export share to Asia. The European Union has broken down as a functioning system. France, Italy, and Spain should together pound their fists on the table, but they are not doing so because they delude themselves that they can go it alone.  Today there is only one country and only one in command: Germany. Romano Prodi, the Italian prime minister who prepared Italy for EMU membership in the 1990s and presided over the euro’s launch as European Commission chief.  Martin Wolf writes in the Financial Times that the OECD is insisting that Europe’s North South gap in labor competitiveness cannot be closed by putting all the burden of adjustment on already depressed economies in the south.

And let’s look at three more quotes from Ambrose (from separate columns over the past few weeks) that clearly illustrate the zeitgeist in Europe: Conflicting narratives of the crisis are emerging, pitting creditor and deficit states against one another. The central tenant of EMU doctrine is that countries will not reform unless they face a crisis, and their feet are held to the fire. There is a near religious belief in Berlin, evangelized by Brussels, and the EMU gang of five, that any let-up in austerity, any recourse to stimulus, let alone a new deal, is a gift to shirkers who want to dodge reform.

Yet the ECB surprised us all and cut its interest rates a few weeks ago. Does this signal potential rebellion within the ECB? A recognition that perhaps the crisis is coming to a new head? Mario Draghi denies that the Eurozone is slipping into a Japan-style deflation trap, but he admits the trend toward deflation is alarming (which is probably the most we can expect from a central banker trying to speak confidence into the markets). He claims the governing council is “wholly in agreement about the need to act,” but does his statement reflect a better appreciation of the situation by German inflation hawks or a revolt by debtor countries (France, Spain, Italy, Portugal, Greece, Ireland, et al.)? The question is, who is in control now? Does this “agreement” signal a major policy shift or a limited compromise by credit countries? The ECB had to do something. The rise of the euro was becoming deflationary and threatening to choke off growth…. It is very rare for a central bank to change its policy so dramatically from one month to the next, so something profound must have happened. – David Bloom, HSBC

Yet all this German bashing prompts a very spirited defense of prudence from my favorite irascible French curmudgeon, Charles Gave: When Keynesian policies are failing, as they always do,  proponents never fail to look for a scapegoat. Usually this is Germany, rebuked for the un-Keynesian practice of earning and saving. Our concern is that when German bashing reaches fever pitch, panic selling often follows. So when I see the U.S. Treasury once again going after the Germans, and that sentiment immediately seconded by the International Monetary Fund, the European Commission and prominent financial commentators, then I start to worry. If these guys have gotten to the desperate stage of rebuking Germany for being prudent and productive, then perhaps it is time to panic.

The euro may be fairly valued versus the US dollar, but it is not “fair value” for Germany and Italy to have the same exchange rate. German industry is slowly but surely destroying the Italian economy (in the French and the Spanish industries). This is what has always happened in history when two countries with different productivity rates are joined by a fixed exchange rate. The trading goods sectors of the one country with the highest productivity destroy the trading goods sector of the one with the lowest productivity. It cannot be otherwise. So the cashed-up Germans will keep doing what they do best: investing in their export industry, while the Italians are forced to stop investing. And since increases in salaries in Germany have been lower than increases in the country’s productivity, then we have both a cost of capital and a unit labor cost that is more favorable than in Italy. One would have to be brain-dead to invest in the trade goods sectors in Italy.

As long as the euro is around, European economies will keep diverging from each other. It cannot be otherwise. There is not going to be a returned equilibrium. The solution proposed by the US Treasury or various columnists in the FT is for Germany to do like everybody else: start wasting capital and moving to lower productivity. An interesting idea, which the British government under Mr. Brown explored at length, but the end result was not that pretty. And for some strange reason, this idea is not very popular in Germany.

My convictions thus are that: this is not a stable system; the Germans will not change their policies; the French or the Italians will not reform; the European economies will keep diverging; and anti-euro political groups will continue to rise in the EMU. If even one country elects an anti-euro party to the majority, then all bets are off.

Stories are beginning to percolate all over Europe but especially in France about the crisis that will be brewing next year. President Hollande’s approval rating has fallen to 15% (not a typo). This is a precipitous comedown for someone swept into power just last year by a small majority of French voters. Unemployment has risen to over 11%. A few months ago, the National Front party won handily in regional elections in liberal strongholds. Led by the fiery Marine Le Pen, it is very nationalist and anti-euro and favors protectionism and a different sort of socialism, but radical economic socialism nonetheless. This is not your father’s conservative party.

My friend Charles Gave, among many others, is convinced that the Eurozone cannot hold together. Forty percent of me agrees with him, yet the other sixty percent acknowledges the sincere desire among European leaders and many European citizens to maintain the union at all cost. And what a cost it will be. There must first be a serious banking union, and within the next year. If they can’t create a banking union, how can they expect to create a fiscal union, which is far more contentious and will require every one of the Eurozone nations to give up a great deal of fiscal sovereignty?

A decisive moment is coming for Europe. If winter is coming, can a French spring be far behind? Will we once again hear the cries of “Aux barricades, mes amis!”? Stay tuned.

Gordon T Long relates in Safehaven.com Euro Pressure Going Critical  The end stag economic issues inherent to European Socialism and Greek Socialism in a long enduring currency union. The EMU has now had Six quarters of recession, historic unemployment and slowing exports. And he posts this chart relating Since 2011 the flow of corporate loans in the EMU remains very weak.

Mike Mish Shedlock reports Founder Of Hollande Resignation Arrested For Insulting The President. Liberalism featured wildcat finance, a Doug Noland term, where bankers waived credit and carry trade wands of fiat money creation. Authoritarianism features wildcat governance where despots waive authoritarian and debt servitude clubs of diktat money creation.

3)  … Details of this week’s financial market trading

On Monday, November 25, 2013,  Japan’s Bank, Sumitomo, SMFG, Chinese Financials, CHIX, and Brazil Financials, BRAF, led World Stocks, VT, -0.4%, Nation Investment, EFA, -0.3%, and Global Financials, IXG, -0.2%, lower, while Aggregate Credit, AGG, traded higher, commencing the see-saw destruction of fiat wealth and fiat money, and pivoting the stock markets from bull to bear, and pivoting the world from the age of liberalism, the era of investment choice, fully into the age of authoritarianism, the era of diktat, on fears that the world central bank’s monetary authority have crossed the rubicon of sound monetary policy, and have made money good investments bad.   Yes, as fiat wealth, Stocks, VT, traded 0.4% lower on Monday, November 25, 2013, the world pivoted from the economic paradigm of liberalism into the paradigm of authoritarianism.

Please consider the following concept as a foundation upon which future analysis can be built. Fiat money is defined as Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW.  If that is true then one can understand that concept, that the death of fiat money, which occurred on October 23, 2013, when the bond vigilantes called the Interest Rate on the Ten Year Note, ^TNX, higher from 2.48%, was decisively transmitted to fiat investments, that is Stocks, VT, on November 25, 2013, which traded 0.4% lower.

Sectors trading higher included, Biotechnology, IBB, Health Care Providers, IHF,  and Transportation, XTN.

Sectors trading lower included Social Media, SOCL, Solar Energy, TAN, and Steel Producers, SLX.

Yield bearing Investment sectors trading lower included Global Real Estate, DRW.

Small Cap Energy, PSCE, Energy Production, XOP, and Energy Service, OIH, traded lower on a lower price of Oil, USO.

Gold Miners, GDX, traded slightly lower and Silver Miners, SIL, traded slightly higher.

Countries trading higher included Inda, INP, SCIN, on higher banks, EPI.

On November 25, 2013, The BRICS, EEB, were led by the Brazil Financials, BRAF, the Chinese Financials, CHIX. And The Emerging Markets, EEM, were led lower by the Emerging Market Financials, EMFN.

On November 25, 2013, investors sold out of the concept of the Global Hot Money trade, this being seen in the strong sell of Thailand, THD, and Philippines, EPHE, as well as China, YAO, CHIX, ECNS, Russia, RSX, ERUS, Brazil, EWZ, EWZS, Mexico, EWW, Chile, ECH, and Indonesia, IDX.

Currency traders in their war of competitive currency devaluation against the world central banks, are successfully selling the Thai Baht, the Philippine Peso, the Russian Ruble, the Brazilian Real, BZF, the Mexico Peso, the Chile Peso, the Indonesia Rupiah, and the Peru Sol short, on the rise of the Interest Rate on the US Ten Year Note^, TNX, resulting in the destruction of nation investment in these Emerging Market Nations, EEM. Ask people living in these countries, if their money died, and they will respond yes, emphatically yes. And as a result their investments, that is their wealth died as is seen in the death of the Emerging Markets, EEM,  and individual stocks within each of the countries, such as in the Philippines, PHI, in Russia, MBT, in Brazil, ERJ, GFA, in Mexico KOF, SIM, in Chile, EOC,  and in Peru, SCCO.

On the rise of the Interest Rate on the US Ten Year Note, investors sold the investment linchpin of liberalism, that being globalism. With the paradigm of liberalism being undermined, a new paradigm is emerging, that being regionalism. It will serve to coordinate economic activity, commerce, and trade around the themes of regional security, stability and sustainability, thereby giving authoritarianism its power to rule in policies of diktat in regional governance in each of the world’s ten regions, and in schemes of debt servitude in every one of mankind’s seven institutions.

US Stocks, VTI, traded 0.1% lower, and the S&P 500, SPY, traded lower, 0.1% lower.  The $SPX traded lower to close at 1802 which is a 0.1% trade lower from its Elliott Wave 5 High of $1,804.The $NYSI traded lower to 319.49. Then $NYMO traded lower to 5.46. The $NYAD traded lower to -326. The $BPSPX traded lower to 83.06.  Of note, Trader Art posts  ($SPX, $SPY) % Bears plummets to a record low.

The US Fed’s QE has brought the S&P 500 up from 666 on March 23, 2009, when the US Treasury announced plans to buy Distressed Investments, such as those traded by Fidelity’s Mutual Fund FAGIX, to 1804, on November 25, 2013.  The US Fed’s trading out “money good” US Treasuries, for the most distressed of asset backed securities, underwrote investment confidence and served as the basis of trust in fiat money and further intervention, that is further stimulus, by the world central banks, to the point of providing Global ZIRP, which has underwritten investment growth in the Awesome Nine Sectors, Aerospace, PPA, Biotechnology, IBB, Pharmaceuticals, PJP, Spin Offs, CSD, Global Consumer Discretionary, RXI, Small Cap Pure Value, RZV, Small Cap Growth, RZG, Transportation, XTN, and Global Industrial Production, FXR.

Chinese Financials, CHIX, led China, YAO, lower, terminating the economic stimulus coming from  PBoC Governor Zhou’s liberalization of domestic interest rates and reduction of intervention in the foreign exchange market, as reported by MarketWatch.  Japan’s Bank, SMFG, led the Nikkei, NKY, lower on fears of the failure of Abenomics; the Yen, FXY, traded lower closing at 96.27.

Of great significant note, the EUR/JPY closed lower at 137.40, down from 137.43 on Friday November 22, 2013. The Eurozone, EZU, traded lower on fears of uncontrollable deflation; the Euro, FXE, traded lower closing at 133.70.

Oil, USO, and Unleaded Gas, UGA, led Commodities, DBC, lower. Natural Gas, UNG, Agricultural Commodities, RJA, JJA, Gold, GLD, and SLV, traded higher. The price of Spot Gold, $GOLD, closed higher at $1,248.

Aggregate Credit, AGG, traded higher, as the Interest Rate on the US Ten Year Note, traded slightly lower .

Bloomberg reports Abe’s Stimulus Folly May Destroy Yen and JGBs. Japanese Prime Minister Shinzo Abe’s reliance on fiscal and monetary easing to defeat deflation may precipitate a “plunge” in the yen and sovereign bonds, said Noriko Hama, an economics professor at Doshisha University’s Business School. “The Bank of Japan is no longer functioning as a proper central bank,” Hama said at a speech in Tokyo on Nov. 21, referring to the BOJ’s doubling of monthly bond purchases to more than 7 trillion yen ($68.8 billion) in April. “The scariest scenario, and the one we should be most wary of, is a bottomless crash in the yen,” as the global financial community loses faith in the currency, Hama said.

Bloomberg reports Oil Sinks on Iran Deal as Stocks Advance; Yen Slides. Crude oil headed for the biggest drop in three weeks after Iran agreed to limit its nuclear program in exchange for relief from some sanctions. Asian stocks climbed, while the yen fell to its weakest since May. Brent crude sank 2.2 percent to $108.62 a barrel by 12:32 p.m. in Tokyo. Futures on the Standard & Poor’s 500 Index, which capped a seventh weekly gain Nov. 22, rose 0.3 percent. The MSCI Asia Pacific Index added 0.4 percent, while credit risk in the region fell. The Yen dropped  0.5 percent while Thailand’s currency and equities slid amid protests in Bangkok with Smartknowledgeu reporting in Zero Hedge Thai Capital Plagued By the Biggest Anti-Government Protests in Years.

Bloomberg reports Europe Twin Woes Fester in Draghi Job-to-Inflation Fight. Europe’s twin woes of too little inflation and too many unemployed will dominate data due this week just as officials prepare forecasts backing the rationale for Mario Draghi’s surprise interest-rate cut. Inflation stayed close to the lowest level in almost four years in November with a reading of 0.8 percent.

On Tuesday, November 26, 2013, the death of fiat money, that is Credit, AGG, and Currencies, DBV, and CEW, transmitted death to periphery nation investment, by the short selling of the currency traders.  The death of fiat money, that started on October 23, 2013, when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, transmitted death to Emerging Market Mining, EEMT, Emerging Market Financials, EMFN, Industrial Miners, PICK, Steel Producers, SLX, and Metal Manufacturers, XME, largely by the currency traders selling the Brazilian Real, BZF, and the Australian Dollar, FXA, thus establishing the end of profitable investment choice in global mining and in industrial production.  Debt deflation, that is currency deflation, at the hands of the currency traders, forced Emerging Market bonds, EMB, lower as well, on a day when other credit investments traded higher as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.70%.

Gordon T Long relates in Safehaven.com Euro Pressure Going Critical posts chart showing the Current Account Balances of the Peripheral BRICS, where Brazil, EWZ, Peru, EPU, Chile, ECH, and India, INP, reading terrifically red current account balances; with the first three nations have born the greatest disinvestment and short selling.

Brazil Financials, BRAF, traded lower, taking Emerging Market Financials, EMFN, Brazil, EWZ, EWZS, and its Paper Producer, FBR, on a lower Brazilian Real, BZF. Emerging Market Miners, EMMT, such as Brazil’s VALE, traded lower on lower Emerging Market Currencies, CEW.

And the death of fiat money, on October 23, 2013, transmitted death to yield bearing Electric Utility Stock Invesment, XLU, on November 26, 2013, immediately after earnings season. These large scale, debt intensive, high yield industrial investments died a delayed death; these are among the first of globalism’s yield bearing investment investment gems to lose their glory. Liberalism’s pursuit of yield rally started to come to an end on November 26, 2013, with the sale of hugely debt burdened Electric Utilities, XLU, These include Electric Utilities, OGE, CNP, AES, NEE, and LNT.  The Debt Trade, that along with Currency Carry Trade Investment, such as AUD/JPY, which has been the basis of Globalism and the basis of liberalism, as both as an age, and as a paradigm, is peaking out.

And with the death of the Global Hot Money trade, seen in Thailand, THD, Philippines, EPHE, Peru, EPU, Chile, ECH, Brazil, EWZ, trading lower on November, 25, 2013, and now with the failure of  Global Industrial Production Investment, seen in Industrial Miners, PICK, Steel, SLX, and Metal Manufacturing, XME, trading lower, liberalism as the age of invesment choice, and its schemes of credit and carry trade investment, are being relegated to the dustbin of history.

With fiat money, that is Credit, AGG, and Currencies, DBV, CEW, dead as a doornail, and now yield bearing fiat wealth Electric Utilities, XLU, failing, and Global Hot Money fiat wealth, THD, EPHE, EWZ, failing, and Global Industrial Production wealth, PICK, SLX, and XME, failing, its reasonable to believe that World Stocks, VT, Nation State Investment, EFA, and Financial Institution Investment, EFA, will begin to fail.

The Apostle Paul’s word of 2 Corinthians 5:17-18 communicates that all things be of God. And the Apostle John’s bible prophecy of Revelation 13:1-4, foretells that out of waves of sovereign insolvency and banking insolvency, that liberalism will be replaced by authoritarianism; specifically that regional governance will come to rule in the world’s ten regions, and totalitarian collectivism to occupy in each of mankind’s seven institutions.  The failure of the US Dollar Hegemonic Empire, known also as the banker regime, is seen in the US Dollar, $USD, UUP, rising in value since October 23, 2013, and fiat money, that is Credit, AGG, and Currencies, DBV, CEW, falling in value.

Confirmation of the failure of this Empire is seen in the news reports by Gareth Porter US Officials Hint at Reservations on Final Nuclear Deal and Jason Ditz US Threatens To End Afghanistan Occupation; both documenting that the US is no longer a global kick-ass empire.

In Prometheus Fashion, To Create, One Must First Destroy. The prophet Daniel’s Bible prophecy of Daniel 2:25-45 foretells that the two iron legs of global hegemonic power, the UK, and the US, will collapse, and a Ten Toed Kingdom, consisting of the miry mixture of iron diktat and clay debt servitude, will emerge in the world’s ten regional zones, to replace investment choice and credit.  The failure of the Milton Friedman Free To Choose floating currency regime, and the US Dollar as the world’s reserve currency, is pivoting the world out of liberalism and into authoritarianism.  Authoritarianism features an entirely new empire, the US is no longer in charge of economic and political matters. Eventually, according to Bible prophecy of Revelation 17:12, ten kings will come to rule in each one of the Toes, that is in each one of the world’s ten regions.

This ten toed monster is described as in Daniel 7:7, as beastly, dreadful and terrible, exceedingly strong; it has huge iron teeth; it’s devouring, breaking in pieces, and tramples the residue with its feet. It’s different from all the beasts that were before it, as it has ten horns. This fourth beast is very much a revived Roman Empire, as Elevation Ministries posts The Last In A Lineage Of Four Beasts: the Roman Empire, the Greek Empire, the Merdo Persian Empire, and the Babylonian Empire.

The Sovereign of Revelation 13:5-10, will begin to take control of the ten king empire as he rises from his beginning as a little-horn, that is one of little authority, as presented in Daniel 7:8, Daniel 7:20, Daniel 7:23, and Daniel 7:24.  He will eventually seduce with intrigue the entire nation of Israel, Daniel 11:32. All legal precedent, traditional authority and power will be swept away before him, as he rises to destroy the “prince of the covenant”, the leader in Israel, that is the one who presides over the temple and the government, as foretold in Daniel 9:26.  He will depose three of the original ten kings,  Daniel 7:8. The Sovereign is of Jewish heritage, whether he or others recognize it, as Daniel 11:28 communicates he returns to his land, and his heart is moved in rage against the Jewish covenant.

Sectors trading higher included Homebuilders, ITB, Small Cap Growth, RZG, Spin Offs, CSD, Small Cap Industrials, PSCI, Small Cap Pure Value, RZV, Aerospace, PPA, Media, PBS, Retailers, XRT, Health Care Providers, IHF, Consumer Services, IYC, Global Consumer Discretionary, RXI, Global Industrial Producer, FXR, such as Ireland’s Ingersoll Rand, IR, and Germany’s Siemens, SI, and Biotechnology, IBB, all to new rally highs, very likely terminating the investment gains that have come as investors have rotated out of Bonds, BOND, beginning October 23, 2013.

Sectors trading lower included Global Industrial Miners, PICK, such as the UK’s RIO, on a lower Australian Dollar, FXA, and Brazil’s VALE, on a lower Brazilian Real BZF, Uranium Miners, URA, Copper Miners, COPX, Rare Earth Miners, REMX, Steel Producers, SLX, Metal Manufacturers, XME, Rare Earth Miners, REMX, and Agriculture Fertilizer Manufacturers, SOIL.  Currency traders through competitive currency devaluation are destroying investment opportunities in global mining and global industrial production. Their authority comes from the bond vigilantes having called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, beginning October 23, 2013.

Nations trading higher included Argentina, ARGT, Taiwan, EWT, South Korea, EWY, and Germany, EWG, to a new rally high. Thailand, THD, and Philippines, EPHE, bounced higher recovering some from yesterday’s strong trade lower; as these two nations trade in tandem, as Benson te remarks, “So ASEAN equities appear to trade in pairs: Singapore’s STI-Indonesia’s JCI and Philippine Phisix-Thailand SETi”.

Nations trading lower included Brazil, EWZ, EWZS, Australia, EWA, KROO, New Zealand, ENZL, Indonesia, IDX, Egypt, EGPT, The Nikkei, NKY, and Canada, EWC

The death of fiat money, that is Credit, AGG, and Currencies, DBV, CEW, was transmitted to yield bearing investment sectors Electric Utilities, XLU, such as AES, D, and NEE. Residential REITS, REZ, which took Real Estate, IYR, lower, as well as Global Utilities, DBU, this action came by short sellers who successfully sold these sectors lower now that it is after earnings season.

Gold Miners, GDX, and Silver Miners, SIL, traded lower, as all currency carry trade investment washed out of these sectors.

Global Consumer Staples, KXI, traded lower as PEP, IBA, PG, DEO, UN, K, SAFM, PPC, CAG, INGR. traded lowe.

A trade lower in the Interest Rate on the US Ten Year Note, ^TNX, to 2.70%, and a flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Flattner ETF, FLAT, trading higher in value and the Steepner ETF, STPP, trading lower in value, took Ultra Junk Bonds, UJB, and Junk Bonds, JNK, Senior Bank Loans, BKLN, and Distressed Investments, FAGIX, to their rally highs. Of note, the Finviz chart of Aggregate Credit, AGG, and the chart of Mortgage Backed Bonds, MBB, both show trading in the middle of consolidation triangles, violent movement can be expected, either up or down, from these trading patterns; I expect a violent move down, more than a move higher.

The WSJ reports Volatile Loan Securities Are Luring Fund Managers Again. Collateralized Loan Obligations Offer High Returns, And Risk.  Investment funds aimed at individual investors are barreling into collateralized loan obligations, a complex and volatile type of security that was shaken by the financial crisis. Lured by annual returns of as high as 20%, some mutual-fund managers are buying CLOs through investment funds that purchase stakes in loans to companies with low credit ratings. Another type of loan investment fund, business-development companies, also have begun buying CLOs, according to securities filings.

The NYT reports New Boom in Subprime Loans, for Smaller Businesses. A small, little-known company from Missouri borrows hundreds of millions of dollars from two of the biggest names in Wall Street finance. The loans are rated subprime. What’s more, they carry few of the standard protections seen in ordinary debt, making them particularly risky bets. But investors clamor to buy pieces of the loans, one of which pays annual interest of at least 8.75 percent. Demand is so strong, some buyers have to settle for less than they wanted. A scene from the years leading up to the financial crisis in 2008? No, last month.

Liberalism’s grand finale financial market rally, has been a pursuit of yield rally, as is seen in the Awesome Nine ETFs, PPA, IBB, PJP, CSD, RXI, RZV, RZG, XTN, FXR, trading higher on a rise in Distressed Investments, FAGIX, and as is seen in the Eurozone Stocks, EZU, trading higher on Eurozone Debt, EU, as well as a currency carry trade rally, as is seen in US Stocks, VTI, trading higher, on the Euro Yen carry trade, that is the EURJPY.

Under liberalism, credit and currency carry trade investing has created tremendous banker driven moral hazard based prosperity.

Under authoritarianism, diktat and debt servitude, will create crushing regional nannycrat enforced austerity.  For example, AP Portugal’s Latest Austerity Budget Wins Approval.

The overvalued stock markets is communicated by Abe Gulkowitz of The Punch Line as he writes in Zero Hedge Meager Growth But The Markets Roar Major Economies face debilitating deflation pressures.

In Europe, for example, the latest annual inflation statistics fell in twenty-three Member States, remained stable in one and rose in only four. The HSBC/Markit Flash China PMI came in at 50.4 in November, marking a two-month low and missing expectations.

The survey still indicated that the Chinese economy is expanding but it also raised fears that growth may be tailing off in the fourth quarter. China will be lucky if it manages to hit its official target of 7.5% growth in 2013, a far cry from the double-digit rates that the country had come to expect in the 2000s.

Growth in India (around 5%), Brazil and Russia (around 2.5%) is barely half what it was at the height of the boom.

In Europe, the Markit Flash Eurozone PMI fell from 51.9 to 51.5, the lowest reading for three months. The French index was particularly weak, the PMI was at its lowest level since June. Germany continued to improve but the rest of the eurozone seems to be languishing. Questions abound whether the EU risks following the path carved by the sluggish Japan in the 1990s.

Yet financial assets point to a worrisome asset inflation environment. Many have written off the likelihood that the Federal Reserve would begin QE tapering this year. As stocks hit new records and small investors, finally, return to the market, some analysts are getting worried.

Yes indeed there is cause to worry, as the death of fiat money, that is Aggregate Credit, AGG, and the Major World Currencies, DBV, such as the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, beginning with the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, was transmitted to fiat wealth, specifically Global Industrial Miners, PICK, Uranium Miners, URA, Copper Miners, COPX, Rare Earth Miners, REMX, Steel Producers, SLX, Metal Manufacturers, XME, Rare Earth Miners, REMX, and Agriculture Fertilizer Manufactuers, SOIL. on November 26, 2013, as is seen in their combined ongoing Google Finance Chart trading lower in value. Debt deflation working in competitive currency devaluation through the hands of the currency traders is destroying fiat wealth; first came the death of fiat money on October 23, 2013, and now comes the death of fiat wealth on November 26, 2013.

Liberalism as a paradigm, an age, and a way of life is history, as investors no longer trust in the world central banks policies of investment stimulus; they believe that such has crossed the rubicon of sound monetary policy, and has made “money good” investments bad. Credit instruments such as Emerging Market Bonds, EMB, and carry trade investment schemes such as the AUD/JPY are no longer able to generate fiat wealth.

Authoritarianism as a paradigm, an age and a way of life, is the way of future, as people place trust in the diktat of regional nannycrats and regional bodies such as the ECB, and statist public private partnerships for regional security, stability, and sustainability.

It’s reasonable to expect that the death of fiat money will be transmitted to other sectors of fiat wealth very soon as the bull market fades and the bear market that commenced on November 25, 2013, gets underway.

One might consider a program of short selling, and using the ETFs, STPP, HDGE, XVZ, GLD, JGBS, EUO, HYHG, SAGG, seen in this Finviz Screener, as a basis for margin in one’s brokerage account, where one might sell Small Cap Pure Value Stocks, RZV, and Small Cap Growth Stocks, RZG, short.

If God’s Word of Bible prophecy be true, there will never, ever be a sound money system, with free prices, nor any experience of liberty as perceived by Libertarians and Austrian Economists, like FA Hayek or Murray Rothbard of the Mises Institute, or Lew Rockwell of the Ludwig Von Mises Institute.  Such dreams of freedom are mirages on the authoritarian desert of the real; and such dreamers are those who worship their own will in matters of human philosophy, as communicated by the Apostle Paul in Colossians 2:18.

Rather than delve into the writings of men, I suggest that one reflect on the Doug Batchelor question Why Does The Bible Cloak Prophecies In Symbols?  as he writes on Animals and their parts, Colors, Metals, elements, and natural objects, Miscellaneous objects, Actions, activities, and physical states, and People and body parts.

On Wednesday, November 27, 2013, World Stocks, VT, and Global Financials, IXG, rose to new rally highs. Eurozone Nations Germany, EWG, Finland, EFNL, Spain, EWP, Finland, EWN, and Greece, GREK, traded higher.  Eurozone Stocks, EZU, popped to a new rally high as currency traders sold the Japanese Yen,  FXY, and held the Euro, FXE, steady, which resulted in a blast higher in the Euro Yen Currency Carry Trade, EUR/JPY, which closed at 138.69.  The US Dollar, $USD, UUP, rose to close at 80.27.

US Stocks, VTI, comprised of Large Cap Nasdaq Stocks, QQQ, the Russell 2000, IWM, and the S&P 500, SPY, rose to new rally highs.  The Nikkei, NKY, rose slightly.  However, Asia excluding Japan, EPP, Russia, RSX, Brazil, EWZ, Canada, EWC, traded lower as the currency traders also sold the Australian Dollar, FXA, the Brazilian Real, BZF, the Russian Ruble, and the Canadian Dollar, FXC. Of note, the chart of Brazil, EWZ, shows that it fell strongly through support.

World Stocks, VT, rose 0.4% to a new rally high, as most every sector traded higher.

Global Growth Sectors rose the most, in what is likely to be liberalism’s grand finale rally.

Timber Producers, WOOD, 1.6; the Timber Producers rose vertically in price.

Design Build, FLM, 0.9; FWLT, TPC, AGX, FIX, MTRX, STRL, PRIM, rose strongly (JEC, FLR, and CBI did not rally)

Metal Manufacturing, XME, 0.8

Social Media, SOCL, 0.7

Resorts and Casinos, BJK, 0.6

Yield Bearing Sectors

XLU, -0.2

DBU, -0.3

Global Industrial Producers,

PICK, 0.7

SLX, 0.6

General Sectors,

TAN, 1.3

CSD, 1.2

PNQI, 1.1

XTN, 1.0

RZV, 0.9

CARZ, 0.9

PPA, 0.8

FPX,  0.7

FDN, 0.7

RXI, 0.7

PSCI, 0.6

RZG, 0.6

XRT, 0.5

PBS, 0.5

FXR, 0.4

IGV, 0.3

PJP, 0.2

In yield bearing stocks, Leveraged Buyouts, PSP, and Shipping SEA, traded higher, but remained below their October 23, 2013 high. Utility Stocks, XLU, continued trading lower. Most every yield bearing sector, seen in this Finviz Screener, is trading below their October 23, 2013 high.

Global Financials, IXG, rose 0.3% to a new rally high; financial sectors traded as follows:

Money Center Bank Leader, LYG 3.2

Chinese Financials, CHIX, 2.1

Emerging Market Financials, EMFN, 0.9 led by Argentina’s BRF, BBVA, and Brazil BRAF, BBD, BBDO, ITUB,

European Financials, EUFN, 0.7 led by IRE, NBG, SAN,

Regional Banks, KRE, 0.5, led by SNV, HBAN, STI, USB, FITB, RF, SNV, PNC,

Investment Bankers, KCE, 0.2, led by MS

Stock Brokers, IAI, 0.2

Too Big To Fail Banks, RWW, 0.1 led by BK

Asset Managers, 0.1, led by BLK, STT, and WETF

Nation Investment, EFA, traded 0.2% higher, but remained below its recent highs.

YAO, 1.9

ECNS, 1.4

THD, 0.6

EPHE, 2.4

ARGT, 1.5

EWT, 0.7

EWY, 0.8

NORW, 0.7

EWZ, -1.2; all hot money has flowed out of Brazil; investors are now selling it short

EWA, -0.4

KROO, -1.6

TUR, -1.5

ENZL, -0.6

RSX, -0.6

EWC -0.5

Stocks of note include the following …  MU 4.2,  GM 3.1,  S 2.5,  PUK 1.8, WDC 1.8,  FDX 1.4, AMZN 1.4, BLK 1.3,  SNDK 1.2,  IR 1.1, DAL 1.0,  SAP 1.0,  SI 1.0,  PCLN 1.0,  ORCL 1.0,  YHOO 0.9, MSFT 0.9.  BT 0.7,  VOD 0.6,  QCOM 0.4,  STX 0.4,  XRX 0.3,  APH 0.1,  APH 0.1, AMAT -1.0,  TU -0.1,  MSI -0.1,  CA -.02,   VZ -0.2,  TNX  -0.4,

Global Industrial Miners, PICK, traded higher, even though the price of base metals, DBB, traded higher.  Copper Miners, COPX, traded lower on a lower price of Copper, JJC. Global Agriculture, PAGG, traded unchanged, even though the price of Agricultural Commodities, RJA, JJA, rose.

Small Cap Energy, PSCE, Energy Production, XOP, and Energy Service, OIH, traded lower, as Oil, USO, plummeted, and Natural Gas, UNG, continued its rally higher. Unleaded Gas, UNG, traded unchanged.  The price of Spot Gold, $GOLD, closed at $1,237.

Closed end equity funds, CSQ, GAM, JCE, seen in their combined ongoing Yahoo Finance Chart traded higher.

Call Write Bonds, CWB, the stock market investor’s weather vane, traded to a new rally high.

Japanese Government Bonds, traded slightly lower, as reflected in their inverse, JGBS, trading slightly higher.

There has been a death. The death of fiat money, that is Credit, AGG, and Currencies, DBV, and CEW, that commenced on October 23, 2013, when bond vigilantes steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, and called the Interest Rate higher on the US Ten Year Note, TNX, higher from 2.48%, continued dieing even more today November 27, 2013.

Confirmation of such a death comes from two sources.

The first evidence that of death of fiat money comes from God’s Word, as the Revelation of Jesus Christ, commenced, as those things which must shortly come to pass, Revelation 1:1, flowed out, as He opened the First Seal of The Scroll of End Time Events, Revelation 6:1, releasing the First Horseman of the Apocalypse, the Rider on the White Horse, the one who has a bow without any arrows to effect a bloodless global coup d’etat, to take sovereignty from democratic nation states, and transfer that sovereignty to nannycrats working in policies of regional governance diktat and schemes of totalitarian collectivism debt servitude; this is clearly seen in the chart of Nation Investment, EFA, trading lower from October 23, 2013.

And the second evidence is of the death of fiat money is Olivier Blanchard, one of liberalism’s thought leaders, who spoke to the importance of lenders of last resort in liberalism, as he delivered Liberalism’s Eulogy in IMF speech Monetary Policy Will Never Be The Same.  Turning to liquidity provision: in advanced countries (but, again, the lesson is more general), we have learned that runs are relevant not only for banks, but also for other financial institutions, and for governments. In an environment of high public debt, rollover risks cannot be excluded. An implication, and one of the themes emphasized by Paul Krugman, is that it is essential to have a lender of last resort, ready to lend not only to financial institutions but also to governments. The evidence on periphery sovereign bonds in the Euro area, pre and post the European Central Bank’s announcement of outright monetary transactions, is quite convincing on this point.  Bloomberg reports PBOC Will Basically End Normal Yuan Intervention.

Although fiat money is dead as a doornail, investors rallied World Stocks, VT, in very much a zombie fashion, on margin debt, and currency carry trade investing. Whereas the death of fiat money, transmitted death to Emerging Markets, EEM, on October 23, 2013, terminating profitable investment in many Asian Nations, including, IDX, THD, EPHE, EWT, EWM, EWS, and EWY, as well as in South America Nations of EWZ, EPU, and Major World Markets, such as Russia, RSX, as well as Sweden, EWD, a country with a large current account deficit.

And the death of fiat money transmitted death to Design Build, FLM, Metal Manufacturing, XME, Resorts and Casinos, BJK, such as MGM, and Timber Producers, WOOD, such as SWM, PCL, MV, DEL, LPX, GLT, WY, RYN, and PCH, on October 23, 2013. And the death of fiat money transmitted death to Yield Bearing Utilities, XLU, such as AES, D, and NEE, and Global Industrial Production, specifically, Industrial Miners, PICK, such as Australia’s BHP, and Steel Producers, SLX, on November 7, 2013.  Globalism died October 23, 2013, when the bond vigilantes calle the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%.  Regionalism is now the new dynamo for economic life; Europe will be the model region for the new normal of dikat money.

Ultra Junk Bonds, UJB, and Junk Bonds, JNK, traded higher, while the bond vigilantes steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, and called the Interest Rate on the US Note,  ^TNX, higher to now be established at 2.75%.  Long Duration Tips, LTPS, Emerging Market Bonds, EMB, US Treasuries, TLT, World Treasury Bonds, BWX, and Mortgage Backed Bonds, MBB, led Aggregate Credit, AGG, lower, as most every credit investment seen in this Finviz Screener, traded lower.

The Japanese Yen, FXY, the Australian Dollar, FXA, and the Canadian Dollar, FXC, led Major World Currencies, DBV, lower, and the Brazilian Real, BZF, led Emerging Market Currencies, CEW, lower.

Today’s rally in stocks is simply the continuation of a zombie rally with stocks rising on a risk-on margin credit and currency carry trade rally. Fiat wealth, that is World Stocks, VT, and Global Financials, IXG, and Nation Investment, EFA, were zombified on November 26, 2013, by margin credit and Euro Yen Currency Carry Trade, that is EURJPY, investment.

On Thanksgiving Day, November 2013

Liberalism’s entire financial system has been based on ever-increasing debt to prevent it from imploding. Chris Martenson writes in Mises The Fed Must Inflate. For the Fed to achieve anything even close to the historical rate of credit growth …  (Seen in the Chart of Total Credit Market Debt, TCMD, which is produced quarterly and has last reading for 2013:Q2 of 57,562.88 Billions of Dollars, and which is a measure of all the various forms of debt in the U.S. That includes corporate, state, federal, and household borrowing. So student loans are in there, as are auto loans, mortgages, and municipal and federal debt. It’s pretty much everything debt-related) …  the dollar will have to lose a lot of value. This may in fact be the Fed’s grand plan, and it’s entirely about keeping the financial system primed with sufficient new credit to prevent it from imploding.

Edward Harrison of Credit Writedowns writes The Limits Of Monetary Policy So the central bank lowers interest rates to stimulate credit growth. As a result, financial institutions deem a greater number of projects and … If the secular stagnationists are right, there will still be a shortage of demand when the future comes around, so there will be a need for ever-greater injections of monetary stimulus (presumably through quantitative easing) in order to avoid an ever-worsening recession. Sir Mervyn King pointed this out shortly before he retired from the BoE.  Monetary policy’s transmission channels are more geared to asset prices than to the real economy. This is why I call the over-reliance on monetary policy.

The bond vigilantes came into control of the Interest Rate on the US Ten Year Note, ^TNX, on October 23, 2013, and as a result the US Federal Reserve’s monetary policies, as well as those of the other world central banks no longer support credit growth, as investors no longer trust that the policies that have supported expansion of  key GDP investment areas.

First, Global Growth Sectors, Timber, WOOD, and Design Build and Construct, FLM.

Second, Global Hot Money Nations: Thailand, THD, Philippines, EPHE, and Brazil EWZ

Third, Yield Bearing Sectors: Electric Utilities, XLU.

Fourth, Global Industrial Production Sectors:, Global Miners, PICK, Steel Producers, SLX, and Metal Manufacturing, XME

The combined investment chart of these, when plotted with International Corporate Bonds, PICB, shows these to be losing investment value on the exhaustion of credit, coming at the hands of bond vigilantes who are steepening the 10 30 US Sovereign Debt Yield Curve, STPP, calling the Bellwether Interest Rate, ^TNX, higher.

Failure of trust in the world central banks’ monetary authority is causing not only monetary deflation, seen in the US Fed’s report of M2 money supply growth turning negative, and is also causing investors to derisk out of capital intensive investments.  The traditional plan of the Fed Reserve cannot work and will not work, as the world pivoted from the era of credit growth to credit decline, and era of monetary growth to monetary decline, on October 23, 2013, when Jesus Christ, acting in dispensation, that is the administration of all things economic and political, for the completion of every age, opened the first seal of the scroll of end time events, and released the Rider on the White Horse, who has a bow without any arrows to effect global coup d’etat to transfer sovereignty from democratic nation states to regional nannycrats and regional bodies such as the ECB. Thus enabling the bond vigilantes to call the Interest Rate on the Ten Year Note, ^TNX, higher from 2.48% utterly terminating Credit, AGG, and Currencies, DBV, and CEW.

On October 23, 2013, the world reached the economic tipping point whereby monetary stimulus could no longer sustain economic growth. Furthermore much of the stimulus is now left it on deposit at the Fed as an interest-bearing, zero-risk asset.

Quietly, the world central banks have came out with a new end game, that is to roll out the antifragile financial system (an Alberto Mingardi Econolog Econolib term) where banks of all types, the Too Big To Fail Banks, RWW, the Regional Banks, KRE, the Nasdaq Community Banks, QABA, and Savings and Loans, S&Ls, such as BOFI, STSA, EBSB, ISBC, STSA, PULB, BANR, are going to be integrated into government, and will will be known as the government banks, or gov banks for short, and will serve as the bedrock for regional governance, which replaces democratic nation state rule.

The Fed, and other central banks don’t have an endgame that includes helping the investor, the working class or middle class. Monetary policies of easing and monetary tools such as $85 billion of purchasing of debt is history, that is history in the sense that it has any useful benefit.

The world central bankers are effecting a global economic and political coup d’etat, … with the ECB announcing a plan to supervise 130 European Banks, and the UK Central Bank providing the new monetary policy tool of the Revised Sterling Monetary Framework, and the US Federal Reserve providing two new monetary policy tools, that is Fixed Rate Full Allotment Reverse Repo Facility, and the Liquidity Coverage Ratio, … pivoting the world from liberalism’s regime of nation state democracy into authoritarianism’s regime of regional statism, specifically regional governance and totalitarian collectivism, except for the Big Apple, as the WSJ reports New York City Takes Left Turn.

It’s inevitable that money market fund, MMF, will break the buck, because they are bond based, and interest rates are rising quickly destroying the underlying investment. Thus capital controls are coming soon. Arnold King writing in Ask Blog has it right Rogoff Eventually Says That One Source Of Financial Crisis Is Ordinary Debt. One of the reasons that debt is over-utilized is that it often comes with a government guarantee, either explicit or implicit. One solution he proposes is to get rid of bank deposits. Instead, he would have the Fed run ATMs, and the only transaction accounts people would have would be deposits at the Fed, which I’m guessing would not earn interest. In order to earn interest, people would have to invest in risky securities.

On Friday, November 29, 2013,  Daily FX reports EURJPY Gaps Open Higher To 139.06. And the ongoing Google Finance Chart of the EUR/JPY communicates that for the day and for the last five months, beginning in July 2013, this currency carry trade has given seigniorage, that is moneyness to World Stocks, VT, Global Financials, IXG, and Nation Investment, EFA; but of note, Nation Investment, EFA, has not attained its October 23, 2013 high, when Jesus Christ, opened the first seal on the Scroll of End Time Events, and released the Rider on the White Horse, to take sovereignty from democratic nation states and transfer it to regional nannycrats.

Ever since the bond vigilantes steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, rising, and called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013, debt deflation has been underway, commencing the death of fiat wealth, seen in four key GDP investments areas:

First, Global Growth Sectors: Timber, WOOD, Small Cap Energy, PSCE, and Energy Production, XOP, Energy Service, OIH, Social Media, SOCL, Solar Energy, TAN, Resorts And Casinos, BJK, Design Build, FLM,

Second, Global Hot Money Trade Nations: Thailand, THD, Philippines, EPHE, and Brazil EWZ.

Third, Yield Interest Bearing Sectors: Electric Utilities, XLU, such as AES, D, and NEE.

Fourth, Global Industrial Production Sectors: Industrial Mincers, PICK, such as BHP, Steel Producers SLX, and Metal Manufacturers, XME.

Credit, AGG, failed on October 23, 2013. The value of US Ten Year Note, TLT, has fallen 3.1%, Eurozone Debt, EU, 1.6%, Emerging Market Bonds, EMB, 1.9%, Mortgage Backed Bonds, MBB, 0.7%.

Competitive currency devaluation has been ongoing, at the hands of the currency traders; and even by some central banks, as The Czech National Bank’s drove its koruna down by 4.4 percent versus the euro on Nov. 7, the most since the single currency’s creation in 1999, when it intervened to spur inflation. Governor Miroslav Singer pledged to keep selling koruna “for as long as needed” to boost growth.

Major World Currencies, DBV, and Emerging Market Currencies, CEW, failed. on October 23, 2013.

In the last month, Finviz charts communicate that the Euro, FXE, has fallen 1.3%, and the Yen FXY, FXY, has fallen 3.9%, giving monetary inflation to Global Financials, IXG, of 1.2%, and giving monetary inflation to World Stocks, VT, of 0.6%, but giving monetary deflation to Nation Investment, EFA, of 0.6%, as the Brazilian Real and the Australian Dollar have fallen more than the Japanese Yen.

The Brazilian Real, BZF, has fallen 5.6%, The Yen, FXY, 3.9%, giving monetary deflation to Brazil, EWZ, of 8.7%.  And The Australian Dollar, FXA, has fallen 4.0%, The Yen, FXY, 3.9%, giving monetary deflation to Australia, EWA, of 5.1%.

An important economic principle is that the of the failure of fiat money, Credit, AGG, and Currencies, DBV, CEW, has transmitted death to investors in Australia, EWA, Thailand, THD, Philippines, EPHE, Indonesia, IDX, Brazil, EWZ. This as Australia’s Bank, WBK, and Brazil, BBDO, BBD, BSBR, and ITUB, along with Peru’s BAP, and Chile’s ECH, have been decimated by the failure of fiat money; these financial institutions stand as white washed tombs in the former age of liberalism.

The people living in Australia, Thailand, Philippines, and Indonesia, have had their economies and their GDP capability literally wiped out overnight, because of the failure of their money, at the hands of the currency traders and the bond vigilantes. These people have lost their investment seigniorage, as their nation’s economies have been destroyed by the rise in the Interest Rate on the US Ten Year Note, ^TNX, from 2.48% on October 23, 2013.

Inasmuch as their currencies no longer float, but rather sink, these can no longer be termed with the expression “citizens”; they are no longer Aussies, Thais, Filipinos, nor Indonesians, but rather, Aseans, residents of the region of Asia.  Likewise, the Brazilians, the Peruvians be residents of South America.

These people are no longer citizens of a democratic nation state, rather they are debt serfs, soon to experience diktat money, whose seigniorage, comes from the mandates of authoritarians and nannycrats overseeing the factors of production, commerce, banking and trade, as they increasingly participate in schemes of regional totalitarian collectivism.

In contrast, through the genius of Milton Friedman, the father of Liberalism’s Free To Choose Banker Floating  Currency Regime, Argentina’s GGAL, BFR, BMA, Ireland’s IRE, Spain’s SAN, Greece’s NBG, and Germany’s DB, as well as the Too Big To Fail Bank leaders, BAC, C, BK, MS, JPM, SNV, as well as Life Insurance leader, PUK, stand as gems of Euro Yen EUR/JPY, that is FXE:FXY, currency carry trade investing.  With the savvy investor the great winner under liberalism’s swell.

What was an intoxicating swell for the those in Europe, was a stabbing death for those in the Emerging Markets, EEM, such as Indonesia, IDX.

In the terminal phase of the age of Liberalism, the greatest swing in wealth came not from the sovereignty of democratic nation states, but from a global currency war between the currency traders and the world central banks. Liberalism’s final debt trade and currency carry trade investing gave  strong seigniorage to the most toxic of investments. For example the Finviz Chart of The National Bank of Greece, NBG, shows that popped higher the week ending November 29, 2013 to rally near its October 23, 2013 high.

Out of increasing waves of unwinding currency carry trade investment, will come the new economic order of regional economic governance. Specifically out of sovereign insolvency, banking insolvency and corporate insolvency will come regional nannycrat policies of fiscal, economic, and monetary diktat, and schemes of regional totalitarian collectivism to establish authoritarianism.

At the end of the day and month, FX Street reports EURJPY Peaks At A 5 And 1/2 Year High At 139.27. Investing.com charts shows the weekly chart of the EUR/USD at strong resistance at 136.11. And the Invensting.com chart shows the weekly chart of the USD/JPY at strong resistance at 102.33. The EURJPY has likely topped out, and will not be providing further seigniorage to fiat wealth, that is to Global Financials, IXG, World Stocks, VT, and Nation Investment, EFA; one can expect see these fall lower lower in their ongoing combined Yahoo Finance Chart.

Liberalism’s peak prosperity has been achieved on both the pursuit of yield, and investment in the Euro Yen Currency Carry Trade, that is EUR/JPY.

Global Financials, IXG, traded to a new rally high; financials trading higher included  India Earnings, EPI , European financials, EUFN, on a higher UBS, CS, IRE, GREK, DB, EMFN and BFR.  Financials trading lower included Japan’s SMFG, and MFG, as well as Brazil Financials, BRAF.

World Stocks, VT, traded to a new rally high; sectors trading to new highs included CHII, FDN, PNQI, PSCI, RZG, QQQ, RZV, PKB, SEA, IBB, FXR. Sectors recovering from a strong sell included BJK, PICK, SLX, EMIF; sectors trading lower today included Solar Energy, TAN.

Credit providers surging to new rally highs included Subprime Auto Lender, CACC, Pawn Shop Lender, FCFS, Student Lender, SLM, and Small Business Lender, AXP.  And Amazon, AMZN, Priceline, PCLN, and Netflix, NFLX, rose parabolically higher, taking Internet Retailers, FDN, to a new rally high.

Of note, the most risk of yield bearing sectors Leveraged Buyouts, PSP., such as DLPH, traded to a new rally high; while other  yield bearing sectors traded lower today; included Real Estate, IYR, Commercial Office Reits, FNIO, and Mid Cap Residential REITS, REZ, such as SUI, SNH, MAA, CPT, AIV, North American Energy Partnerships, EMLP.

For the first time, Dividend Growth  VIG, traded lower. Liberalism as an age and paradigm no longer provides increasing dividends, as there has been a failure of trust in debt based and capital intensive based equities, such as Mortgage REITS, REM, Residential REITS, REZ, North American Energy Partnerships, EMLP, and Electric Utilities, XLU, and as there has been a failure in Major World Currencies, such as the Australian Dollar, FXA, and in Emerging Market Currencies, such as the Brazilian Real, BZF.

Nation Investment, EFA, and Emerging Markets, EEM, traded higher; but remained below their October 23, 2013 highs; nations trading higher today including EZU, EIRL, GREK, EWI, EWG, INP, SCIN, EPHE, EWY, EWT, EWM, EWW, ARGT, EIS and EWU, EWUS, the latter two’s seigniorage came from a 0.9% buy of the British Pound Sterling, FXB, and a 1.2% sell of the Japanese Yen, FXY, which fueled UK Financial Firms, such as PUK, LYG, strongly higher. Nations trading lower included developed economies Australia, EWA, and New Zealand, ENZL, and emerging economies Indonesia, IDX. Gold Miners, GDX, traded higher 2.2% higher, on a higher price of Gold, GLD, and a higher price of Silver. Spot Gold, $GOLD, traded higher to close at $1,250, which is slightly higher than cash production cost for a number of miners. Traders bought volatility, ^VIX, with VIXY, VIXM, XVZ.

On Friday November 29, 2013, the world stands at the apex of a historic pivot point with liberalism on one side and authoritarianism on the other. Please consider the chart of Closed End Equities Fund CSQ, evidencing investment choice; and Closed End Debt Funds, PTY, AWP, PFL, RCS, and EIM, evidencing debt servitude. The former stands a perfect maturity in monetary inflation, while the latter have passed into monetary deflation, as can be seen in their combined ongoing Yahoo Finance chart.

Liberalism’s grand finale rally has been characterized by a pursuit of yield. Wes Goodman of Bloomberg reports “The extra yield corporate bonds offer over Treasuries was one basis point away from the narrowest level in six years as the Federal Reserve’s pledge to keep interest rates low drives a search for income”. And Tracy Alloway of Bloomberg reports “US banks accelerated their purchases of structured products in the third quarter of the year, pushing their holdings of the higher-yielding assets to record levels as they seek to offset continued profit pressure from ultra-low interest rates. Structured finance investments surged to $69bn in the three months to September, a 45% increase on the same period last year and the highest level since the FDIC began breaking the individual figure out in 2009”

Monetary inflation was a characteristic of liberalism. But as investors lost trust in the monetary policies of the world central banks, fiat money has begun to lose its moneyness. Soon fiat money will utterly die, like totally die, and the world will pass into authoritarianism, where the regional integration economic mandates of nannycrats, in public private statist partnerships, provides moneynesss.

In producing peak prosperity, through currency trader’s 1.1% sell of the Yen, FXY, and the 0.3% buy of the EURO, FXE, this week ending November 29, 2013, drove the European Financials, EUFN, 2.0% higher, with Greece’s Bank, NBG, 8.8%, Ireland’s Bank, IRE, 6.4%, and Spain’s, SAN, 1.9% higher, while forcing Japan’s Bank SMFG, 3.4% lower, and a 2.5% rise in Greece, GREK, 0.7% rise in Ireland, EIRL, a 2.1% rise in Germany, EWG, a 1.0% rise in Eurozone Stocks, EZU, a 0.3% rise in Global Banking, IXG, and a 0.1% rise in World Stocks, VT, to achieve liberalism’s peak wealth.

Of note, peak nation investment, EFA, occurred when the US Dollar, $USD, UUP, no longer fell in value, but started to rise when the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, resulting in the death of fiat money, that is Credit, AGG, and Currencies, DBV, and CEW.  The US Dollar, $USD, UUP, no longer serves as the world’s reserve currency, with the result that the world’s dynamo of globalism, is failing to reward investment choice, which is resulting in the rise of regionalism to establish regional security, regional stability and regional sustainability.

Liberalism was an age that provided great financial reward to investors as is seen in the weekly chart of Jazz Pharmaceuticals, JAZZ. David Brown writes in Seeking Alpha, that the company is Trading for 19x current earnings estimates and 14x forward earnings estimates. Nearly all covering analysts have revised EPS estimates up in last 30 days. 17% projected EPS growth for the current quarter, 24% next year, 23% over the next 5 years. Yet, I comment that its stock chart suggest a great fall potential of this highly successful Biotechnology, IBB company.  And liberalism was an age that profited those invested in US Oil and Gas Refiners, such as Tesoro, TSO,  which has risen 540% int five years.

Mike Mish Shedlock writes It’s Time For Banks To Be Banks, Not Hedge Funds Or Slush Funds.  I have to agree, up to a point; one bank that has excelled in responsible economic lending is Bridge Bank, BBNK, Marketwired reports Bridge Bank Ranks Third Amongst Most Active SBA Lenders.

In his article Mr. Shedlock calls for a sound money system, one that is based upon gold bullion. Such be dreaming of the Austrian economics mind, and is a mirage on the authoritarian desert of the real. Jesus Christ, acting in in dispensation, a concept presented by the Apostle Paul in Ephesians 1:10, is tasked by God The Father, to fulfill and perfect every age, bringing it completion much like a ship’s captain completes the manifest before setting sail.

Liberalism was an age and a paradigm whose objective was to make investors wealthy via the seigniorage of a banker regime consisting of a speculative leveraged investment community and a US Dollar Hegemonic Empire, through the process of globalism, based upon the sovereignty of democratic nation states, founded upon the most extreme financialization of equity and debt as is possible, as has been foretold in bible prophecy of the Statue of Empires in Daniel 2:25-45.  It was God’s desire from eternity past to create two massive legs of iron wealth, these being the British Empire, and the US Dollar Hegemonic Empire, immediately before He brings forth the Two Feet Empire, with its miry mixture of policies of regional economic diktat in the world’s ten regional zones, and totalitarian collectivism in mankind’s seven human institutions.

God ordained from eternity past that there be adept individuals living in creativity doing great things in Greenwich, CT, Louisville, CO, Lone Tree, CO, San Jose, CA, Palo Alto, CA, or Midland-Odessa, TX,  and a whole host of other modern cities. And that there be psychopaths, living in clientelism and dependency on transfer payments, SNAP Food Stamps, Medicaid, and Public Housing in in the Mission District in San Francisco, CA, and in other skid rows, as well as living next door to you!

Any moralizing by Austrian economists, coming from the reasoning of liberty, or scolding from Socialists, coming from the presentation of egalitarianism, is what the Apostle Paul calls subjective will worship, the worship of one’s own beliefs coming from philosophy or religion, and is a position that is not based upon the objective truth of New Testament Scripture.

Jesus Christ on November 27, 2013, during the week of Thanksgiving 2013, manifested peak liberalism in the investment marketplace creating peak prosperity, immediately before he pivots the world’s economy from liberalism into authoritarianism.

He perfected the banker regime through the speculative leveraged investment community and the financialization of Equity Investments, such as FXR, PPA, IBB, PJP, CSD, RXI, RZV, RZG, and XTN, as well as through the agency of moral hazard Credit Investments such as Distressed Investments, FAGIX, Leveraged Buyouts, PSP, Ultra Junk Bonds, UJB, and Junk Bonds, JNK, as people placed full faith in trust in Stock Brokers, IAI, and the minting, that is the coinage of Asset Managers, such as BLK, EV, STT, WETF, IVZ, FNGN, BEN, VOYA, and Other Investment Overlords, such as DNB, MORN, BR.

Since the 2008 financial collapse, great investment reward came to those who trusted in Ben Bernanke monetary policies to revitalize economic growth and provide fiat wealth through QE; cases in point be Pure Small Cap Growth, RZG, RBC Bearings,  ROLL, and Pure Small Cap Value, RZV, POOL.  Over the last five and one half years there has been a risk-on trade, debt based and currency carry trade investment bonanza for the savy investor, where the greatest gain went to those invested in the most risky of stocks, those being the Small Cap Pure Value Stocks, RZV. These got a full drink of Ben Bernanke’s investment cool aid, or perhaps better said full helicopter money drop. Monetary inflation galore came to those who received Paulson’s Gift.

A Nobel Peace Prize should have been awarded to Treasury Secretary Hank Paulson. It was on Columbus Day 2008, that Alan S. Blinder in his book After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead, wrote Paulson made a no strings offer to the banks to trade out money good US Treasuries for toxic debt owned by the banks, specifically assets like those traded in Fidelity Mutual Debt Funds FAGIX, this became known as the TARP program.

Pietro Veronesi of The National Bureau Of Economic Research reports Paulson’s Gift. “We calculate the costs and benefits of the largest ever U.S. Government intervention in the financial sector announced the 2008 Columbus Day weekend. We estimate that this intervention increased the value of banks’ financial claims by $131 billion at a taxpayers’ cost of $25 and $47 billions with a net benefit between $84bn and $107bn. By looking at the limited cross section we infer that this net benefit arises from a reduction in the probability of bankruptcy, which we estimate would destroy 22% of the enterprise value. The big winners of the plan were the three former investment banks and Citigroup, while the loser was JP Morgan”.

The provision of TARP as a Fed Monetary policy was the genesis and foundation of QE, which underwrote the expansion of liberalism by securing the seigniorage of investment choice, and established the dynamos of corporate profit and global growth based upon investment opportunities in nation states, and underwrote trust in bankers, such as JP Morgan, JPM, as well as Savings and Loan, such as Bofl Holding, BOFI, carry trade investing and credit, in particular Treasury debt, TLT, and which provided economic action of inflationism, and provided great fiat wealth seen in World Stocks, VT, rising to its November 29, 2013, value of 58.50, and which has produced economic life in both crony capitalism and its luxury, as well as clientelism and its dependency, even extending to support  European socialism, and Greek socialism.

Doug Noland writes in Safehaven.com With the average stock, The Value Line Arithmetic Index, ^VAY, up 40% in 12 months, “global government finance Bubble” excess has certainly turned more publicly conspicuous. Predictably, there is more than ample rationalization and justification. Valuations are not at “Bubble extremes”, is the popular refrain. But at least there’s some superficial attention paid to the “Bubble” issue. At the same time, the predominant attitude in the markets seems to be “if there’s a lot of talk of Bubbles, then the markets surely have much further to run.” I found Byron Wien’s Wednesday comment on CNBC telling: “You don’t stay out of the market waiting for the moment of truth.”

The moment of truth is coming very soon as inflationism is turning to destructionism. When the Lord pivots the world fully in authoritarianism, the counterpart of today’s will worshipers, whether they be philosophers, or priests, or financial seers, will be worshipers of the beast.

George Orwell wrote “The real division is not between conservatives and revolutionaries, but between authoritarians and libertarians.”

I extend that concept to write The real division is between those of fiat, having life experience out of human philosophy or religion, and the elect of God, who live and move and have their being out of Him.

All be spiritual beings, who make decisions based upon the movement of the Spirit of Righteousness, or the movement of Spirit of Iniquity.

All be economists. And economics is synonymous with ethics, as when one says he has economic regard on an issue, he is saying he has ethical regard on the issue. Every person acts in dispensation, that is in household administration of things civil, monetary and political, and these action come from one’s convictions in philosophy or religion. Thus economics is either a philosophy or a religion. Economics is defined as the quality and type of ethical experience present between a person, and another or others, corporations and the state, that is government

Mike Mish Shedlock writes War Between Spain And Germany Erupts Over Watered Down Stress Tests.  I comment that Doug Noland writing in Credit Bubble Bulletin has posted many times that liberalism was an age characterized by wildcat finance. I relate that authoritarianism is an age characterized by wildcat governance where nannycrats bite, rip and tear one another apart to become the top dog despot and top dog seignior.

4) …. Metadata: it’s one essence that is known by the government. By collecting and analyzing one’s metadata, the government is able to compile a “digital persona” of one’s essence, and thus is able to creating a profile of one’s convictions; thus the government is able to know you and what you believe, as it segregates you out from others.

Dahlia Lithwick and Steve Vladeck of Slate write by analyzing our metadata over time, the government can separate the signal from the noise and use it to identify behavioral patterns. And by analyzing the metadata of every American across a span of years, the NSA could learn almost as much about our health, our habits, our politics, and our relationships as it could by eavesdropping on our calls. It’s not the same thing, but the more data the government collects, the more the distinction between metadata and actual content disappears. And that’s just telephony metadata. This week’s disclosures confirmed that the government has collected years’ worth of our Internet metadata as well. And there’s little reason to believe that other species of metadata have not also been vacuumed up, perhaps our financial records, software metadata, and the potential goldmine of our everyday commercial transactions.

We might well think we don’t have an expectation of privacy in information we separately provide to Amazon, Bank of America, Costco, Facebook, and Walgreen’s, but only the government is in a position to aggregate all of that data and thereby build a comprehensive accounting of our lives by examining everything but the “content.”  The Obama administration has insisted that it is not actually accessing these vast stores of data without some kind of individualized suspicion. But such restraint is not required under any statute, and future administrations may not feel similarly circumspect. In any event, every new round of NSA disclosures brings with it fresh reports of “compliance incidents,” where such records were accessed despite such promises. These concerns highlight the significance of the pending legal challenges to the telephony metadata program. We may not get as excited about the government’s sweeping collection of our metadata as we have been over eavesdropping, subway searches, or stop-and-frisk policies, but that may only be because we don’t fully appreciate just how invasive and intrusive these separate data streams can become, once someone is in a position to put them all together.

5) Summary: Out Of Low Inflation Comes Systemic Risk And Not The Risk Of Inflation Perse.

A fall in the money supply and even a fall in the rate of growth in money portends economic increasing recession, Ambrose Evans Pritchard writes in Eurozone M3 Money Plunge Flashes Deflation Alert For 2014. Eurozone money supply growth plummeted in October and loans to firms contracted at a record rate. The European Central Bank said M3 money growth fell to 1.4pc from a year earlier, lower than expected and far below the bank’s own 4.5pc target deemed necessary to keep the economy on an even keel. Monetarists watch the M3 data – covering cash and a broad range of bank accounts – as an early warning signal for the economy a year or so in advance. “This a large dark cloud hanging over the eurozone in 2014; it means the public debt ratios in Southern Europe are at greater risk of exploding,” said Tim Congdon from International Monetary Research.

And Mr. Pritchard goes on to communicate that lack of lending reflects and also causes recession.  Jacques Cailloux from Nomura said the ECB’s actions have yet to restore a functioning interbank market in Europe, and it remains unclear whether the nascent recovery will be enough to lift the region out of “dangerously low inflation”. Nomura said eurzone risks being trapped in “secular stagnation” until the middle of the decade.  The dire credit data may force the ECB to take bolder measures. The Süddeutsche Zeitung said the bank is exploring a variant of the Bank of England’s funding for lending, offering credit lines to banks provided loans are passed on to credit-starved firms.

Lars Christensen of Danske Bank relates “The debt problem in Italy will be much worse if they let nominal GDP fall, leading to yet more austerity.”

Mario Draghi warned that low inflation makes it harder for crisis states in Southern Europe to control their debt trajectories while at the same time carrying out internal devaluations within EMU to regain competitiveness, though he denied that the two goals are inherently contradictory. “If average inflation is allowed to drift too low, adjustment runs into major headwinds as demand suffers and real debt burdens rise,” he said.

Jack Ewing of The NYT writes Tepid Data From Euro Zone Leaves Open Debate on Price Downdraft

Low inflation was the result of falling energy prices, Eurostat said, while the cost of food rose an estimated 1.6 percent and services 1.5 percent. Prices of industrial goods rose just 0.3 percent.

Some economists, noting a pickup in prices for services, saw the rise in inflation as a sign that deflation fears were overblown.

“The data confirm our assessment that the fall of the inflation rate in October was an outlier and the euro zone is not heading for deflation,” Christoph Weil, an economist at Commerzbank, said in a note.

But others warned that deflation, once it starts, could plunge Europe back into crisis and revive doubts about the survival of the euro zone. Deflation can lead consumers to delay purchases in anticipation of ever lower prices, undercutting corporate profits and causing companies to stop investing in new plants and equipment.

Analysts at the advisory firm Oxford Economics calculate that if the euro zone suffered deflation, unemployment could rise to 16.5 percent by 2018. At the same time, Greece and other hard-hit countries in Europe would have even more trouble meeting their obligations, because economic output would shrink and tax receipts would dwindle.

“While there has been a lot of talk about deflation in the euro zone, we think that the implications of such a scenario have not been fully grasped,” Oxford Economics said in a report issued Friday. “Without decisive policy action, a euro zone breakup would be hard to avoid in this scenario.”

New York Fed economists Giannoni and Herman, present that Price Inflation Has Stabilized. Since the early 1990s, the PCE deflator has remained remarkably close to a 2 percent trend line. It has continued to track this trend since the beginning of Chairman Bernanke’s tenure in January 2006, despite a dramatic financial crisis and the Great Recession. By committing to stabilizing inflation over the long run, the FOMC is de facto at least partially stabilizing the price level around a trend line.

Yet, what they do not present is that systemic risk has gone off the scale, and that once a global credit bust and financial system occurs, then all bets are off, and recession could likely occur. I am of the opinion that massive CPI inflation, and headline inflation is a political event and not an economic event.

Fiat money, that is Credit, AGG, and Currencies, DBV, and CEW, died October 23, 2013, with the bond vigilantes calling the Interest Rate on the US Ten Year Note higher from 2.48%, which has destroyed not only US Treasuries, TLT, but also Emerging Market Bonds, EMB.

The failure of Emering Market Bonds, EMB, has compelled those seeking funds to seek money via Dollarization.

Enda Curran of the WSJ reports “Asia’s market for foreign-currency loans is booming. Banks across the region are lending record sums in the ‘G3 currencies’ , the U.S. dollar, the Yen and the Euro,  even as economic growth slows and bad debts continue to rise in places like China and Korea. So far this year, loans in these currencies amounting to $133.4 billion have been issued in Asia, excluding Japan  — 54% more than during the same period a year earlier and more than in all of 2011, the record year for such loans, according to Dealogic.”

Tanya Angerer of Bloomberg reports “Indonesia is planning a sale of U.S. dollar-denominated global bonds next year as Barclays Plc predicts issuance in 2014 will exceed this year’s record. Southeast Asia’s largest economy expects to raise 19% of its debt financing next year from notes denominated in dollars, euro or yen. The Philippines yesterday hired six banks to arrange a series of investor updates next week. US currency note sales in the region outside Japan this year reached a record $123.6 billion last week, exceeding 2012’s all-time high of $121.4 billion.”

Shaun Richards writes on the failure of monetary growth; the growth rate in the money supply is faltering. The Dwindling Euro Area Money Supply And A Liquidity Trap. The news on this was yet again a disappointment. The annual growth rate of the broad monetary aggregate M3 decreased to 1.4% in October 2013, from 2.0% in September 2013.1 The three-month average of the annual growth rates of M3 in the period from August 2013 to October 2013 decreased to 1.9%, from 2.2% in the period from July 2013 to September 2013.

As you can see the rate of growth is declining and if we project that forwards we will have concerns for the Euro area economy as we move through the spring and summer of 2014. This is not inspiring when it is supposed to be recovering and growing after the recession which has just ended.

If we look to the amount of credit being advanced an even grimmer picture emerges from the gloom. the annual growth rate of total credit granted to euro area residents was more negative at -1.0% in October 2013, from -0.8% in the previous month.

Actually Euro area banks were lending to governments so the picture for the private-sector was even worse. Among the components of credit to the private sector, the annual growth rate of loans stood at -2.1% in October, compared with -2.0% in the previous month.The annual growth rate of loans to nonfinancial corporations stood at -3.7% in October, compared with -3.6% in the previous month.

As you can see the picture gets worse as we progress because it is lending to businesses which is in the worst state of all.

A liquidity trap; this is a theoretical concept in economics where monetary policy loses effectiveness. Actually it is mostly defined in terms of interest-rates when they approach zero. But the reality of the credit crunch is wider than that as other monetary measures are lauded and praised but the truth is that their effectiveness has disappointed too.

Another phrase for this situation was called “pushing on a string”. If we look to analyse that we can take a look at what is called narrow money as the ECB can “push” on that.

the annual growth rate of M1 stood at 6.6% in October 2013, compared with 6.7% in September.

As you can see the ECB has been pushing hard but even there the effect may be fading. Now let me add a nuance as you can regard a narrow money measure such as M1 as a money supply but a wider one such as M3 is much more a measure of money demand. So if we take a sweeping simplification we see that the ECB is supplying money that the economy does not want. If we nail that down we see that the main area where there is not “demand” is exactly where the ECB would like to see lending, the business sector.

So the “push” of the ECB is being lost in the financial intermediation of the banking sector which takes the liquidity it provides and seems to prefer at least in the southern periphery to invest the money in government bonds than to actually lend it out as hoped.

It is easy to blame the banks but the ECB has to turn the mirror on itself too. It has imposed a risk measurement system where government bonds in the Euro area have a risk weighting of zero. Apart from being obviously wrong (Greece has had a default and will be joined by others in my opinion) it tempts banks to invest in something “risk-free”. This is exacerbated by the fact that banks are under capital pressure with new stress tests approaching so they are pushed towards “risk-free” sovereign bonds as opposed to risky business lending. In fact business lending is usually regarded in capital terms as very risky. So if you were setting up a structure to cut business lending you actually might have imposed what is taking place right now.Of course at the height of the Euro area crisis it was convenient for the ECB to nudge banks into investing in sovereign bonds as it helped reduce yields but now it is clear that this diverted funds away from more productive areas.

Mr Richards continue with thoughts of credit liquidity in the UK. The value of the pound has risen by 5% since Mark Carney introduced his policy of Forward Guidance we may be getting a bit of deja vu. However there is a difference.

Total lending to individuals increased by £1.7 billion in October. The three-month annualised and twelve-month growth rates were 1.6% and 1.2% respectively.

And I guess that readers will not be falling off their seats when we see the breakdown of this.

Lending secured on dwellings increased by £1.2 billion in October. The three-month annualised and twelve-month growth rates were 1.1% and 0.8% respectively.

Also it looks as though there is more to come.

The number of loan approvals for house purchase was 67,701 in October, compared to the average of 60,685 over the previous six months. Actually consumer credit is currently the strongest component.

The three-month annualised and twelve-month growth rates were 6.0% and 4.7% respectively.

This does seem to have impacted on the real economy if we think of the UK car market which seems to have been boosted by the availability of finance in 2013.

The call of the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, was an extinction event, that terminated fiat Money, that is Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW.

The death of fiat money has been transferred to a growing number of investment sectors, such as Timber Production, WOOD, Design Build, FLM, Utilities, XLU, Industrial Miners, PICK, and Metal Manufacturers, XME, seen in their combined ongoing Yahoo Finance chart

And the death of fiat money has been transferred to Nation Investment, EFA, in particular the Emerging Markets, EEM, Emerging Market Financial Institutions, EMFN, Emerging Market Mining, EMMT, and Emerging Market Infrastructure, EMIF; examples being Indonesia, IDX, Thailand, THD, and Philippines, EPHE, and Brazil, EWZ, EWZS, BRAF, BRXX, Chile, ECH, and Peru, EPU, as well as Developed Nations, Australia, EWA, KROO, and New Zealand, ENZL.

And of note, the death of money is causing monetary deflation in the US, as the stock of M2 Money is on the decline from its peak of 10,988 on 10-21-2013 to 10,922 as of 11-22-2013.

When the death of fiat money is transmitted to World Stocks, VT, and Global Financial Institutions, IXG, there will be a worldwide credit crisis and financial system breakdown known as Financial Apocalypse, foretold in Bible Prophecy of Revelation 13:3-4, and this will be the genesis event for regional governance and totalitarian collectivism to rule the world in each of the world’s ten regions, and for totalitarian collectivism to occupy in each of mankind’s seven institutions, as foretold in Bible prophecy of Revelation 13:1-4.

Low inflation and low interest rates have been the normal under the liberalism’s Global ZIRP, coming from the monetary authority of the world central banks.

Tyler Durden writes in Zero Hedge Banks Warn Fed They May Have To Start Charging Depositors.

Contrary to what the hypocrite banker said that “the danger is that banks are pushed into riskier assets to find yield”, banks are already in the riskiest assets: just look at what JPM was doing with its hundreds of billions in excess deposits, which originated as Fed reserves on its books – we explained the process of how the Fed’s reserves are used to push the market higher most recently in “What Shadow Banking Can Tell Us About The Fed’s “Exit-Path” Dead End.”

What the real danger is, is that once the Fed lowers IOER and there is a massive outflow of deposits, that banks which have used the excess deposits as initial margin and collateral on marginable securities to chase risk to record highs (as JPM’s CIO explicitly and undisputedly did) that there would be an avalanche of selling once the negative rate deposit outflow tsunami hit. Needless to say, the only offset would be if the proceeds from the deposits outflows were used to invest in stocks instead of staying inert in some mattress or, worse (if only from the Fed’s point of view) purchase inert assets like gold or Bitcoin. Which brings us back to the first sentence and the Fed’s now massive Catch 22: on one hand, should the Fed taper, rates will surge and stocks will once again plunge, as they did, in early summer, just to teach the evil, non-appeasing Fed a lesson. On the other hand, should the Fed cut IOER as a standalone move or concurrently to offset the tapering pain, banks will crush depositors by cutting rates, depositors will pull their money from banks en masse, and banks will have no choice but to close on a record levered $2.2 trillion in margined risk.

Holding cash, which pays almost nothing, has been most unattractive, especially when compared to the much higher yields available on alternative investments, such as Leveraged Buyouts PSP, paying 9.9% Junk Bond, JNK, paying 6.2%, Energy Partnerships, AMJ, paying 4.2%, and Global Telecom, IST, paying 3.8%; the pursuit of yield has caused principle in most of these investments to increase in value

In contrast, those who have been holdouts in credit instruments, AGG, have lost principal, Mortgage Backed Bonds, MBB, have lost 1.8% over the last year.

An inquiring mind asks what constitutes safe money? Are money market funds, safe? Will they be able to maintain their constant $1.00 value, or will they “break the buck”?  During QE, business-loan based short term bond funds, such as FLOT, were safe investments, in that they were ever increasing in value; of note, this fiat investment traded sharply lower as world stocks peaked. When the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, on October 23, 2013, on the exhaustion of the world central banks authority, the “money good” attribute of this short term bond funds failed, and serves as ominous warning to those who thing money market funds are safe. And an inquiring mind asks, will the 1-3 Year Treasury Bonds, SHY, be safe investments, that is will they retain their value, or will they too fall lower, as the bond vigilantes steepen the 10 30 US Sovereign Debt Yield Curve, seen in the STPP ETN, STPP, steepening, and call the Interest Rate on the US Ten Year Note, ^TNX, yet even further higher from 2.75%?

By divine intervention The Fed be dead; at least the US Federal Reserve as it has been known is dead, and gone, swept away into the dustbin of history, and rising interest rates are “the new normal”. The death of fiat money, that is Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, occurred on October 23, 2013, when Jesus Christ, acting in dispensation, that is the administration of all things economic and political, for the completion of every age, opened the first seal of the scroll of end time events, and released the Rider on the White Horse, who has a bow without any arrows to effect global coup d’etat to transfer sovereignty from democratic nation states to regional nannycrats and regional bodies such as the ECB. Thus enabling the bond vigilantes to call the Interest Rate on the Ten Year Note,  higher from 2.48% utterly terminating Credit, AGG.

Friday November 27, with its strong stock market performance was likely the zenith of the banker regime’s rule, which featured The Creature From Jekyll Island’s, the ECB’s LTROs and OMT’s, and PBOC’s, monetary stimulus. which came via POMO, and the ongoing Fed’s purchase of Treasuries and Mortgage Backed Bonds, MBB, as David Chapman writes The Fed’s Exploding Balance Sheet! and as Sober Look posts Why Fed’s Taper Is Essential To Stabilize Agency MBS Liquidity

This zenith of fiat wealth investing has completed a regulatory capture, clientelism and crony capitalism, as well as a European Socialism, and Greek Socialism, and Chinese Communism, fiat wealth experience, that came through moral hazard based investing prosperity.  Capitalism, Socialism, and Communism, are epitaphs on liberalism’s tombstone. Fiat money ruled in liberalism.

The beginning of the beast regime’s rule will commence soon out of a global credit bust and financial system breakdown. It features regional governance monetary diktat. Thus introducing regional totalitarian collectivism’s fiat poverty experience, which comes through debt servitude austerity. Regionalism is the flag on authoritarianism’s life experience. Diktat money rules in authoritarianism.

We are at the very end stage of liberalism as Zero Hedge reports Margin Debt Soars To New Record, The result that stocks are terrifically leveraged over debt, and are set for a fall, as is seen in the ratio of  VT:AGG …  EFA:BWX CSQ:PFLEZU:EU …  and most importantly VT:GLD.

Most assuredly there has been a death, that being fiat money. The death of fiat money, that is Credit, AGG, and Currencies, DBV, CEW, has already started to transmit death to fiat wealth, that being World Stocks, VT, Nation Investment, EFA, and Global Financials, IXG.

Out of waves of sovereign, banking, and corporate insolvency, a new monster, the beast regime, with feet of a bear, mouth of lion, and camouflage of a leopard, is coming to rule mankind, displacing the banker regime, and it is making its claw-hold in Europe with its paws well secured in the German coalition agreement, which paves the way for social attacks throughout Europe, and its mouth announcing the militarization of German foreign policy and attacks on democratic rights, as Christoph Dreier of WSWS reports German Grand Coalition: A Government Of Social Austerity And Militarism.

Under liberalism, globalism was the way of life as the banker regime provided democratic nation state policies of investment choice, based upon schemes of credit and carry trade investment, where investors lived as credit genies.  However under authoritarianism, regionalism is the way of life as the beast regime provides regional governance policies of diktat, based upon schemes of totalitarian collectivism, where all live as debt serfs.

Wall Street Investment Banker Christopher Richard Whalen writes in Zero Hedge Default, Deflation and Financial Repression Once interest rates start to rise, the necessity of debt restructuring in Europe, Japan and even the US will become more apparent.  There is no free lunch.  Either we kill growth via financial repression of savers or we embrace the painful process of debt restructuring for the major industrial nations.

There will be no debt restructuring; all of liberalism’s debt will be applied by the beast regime’s  nannycrats to every man woman an child on planet earth in regional gulags of debt servitude. There will be no further monetary stimulus, well, there will be no more effective monetary stimulus; while the central bankers may use existing monetary tools, they will only serve as means for the bond vigilantes and currency traders to continue further debt deflation.

Now, there will be monetary deflation causing recession, coming via the ongoing failure of credit and disinvestment and deleveraging out of currency currency carry trade investing. The new normal is for nannycrats to rule in statist regional governance providing totalitarian collectivism schemes of debt servitude, despite what past and current great economic thinkers present as the way forward.

Recently Pedro Schwartz wrote in EconLibOrg In Praise of Neo-liberalism “The period 1875 to 1945 (or more precisely, to 1947) saw the inner logic of classical liberalism slowly unravel. Ironically, it was around the middle of the 19th century, just when free trade was triumphant, that classical liberalism took a turn in the wrong direction at the hand of John Stuart Mill; his proposal to fundamentally change the institution of private property was the first step on the primrose path.”

“Come 1900, nations around the world began to mimic Bismarck’s Social Insurance. At the same time, Teddy Roosevelt surfed on the wave of Progressivism in the United States. After the upheaval of WWI, the reaction against classical liberalism deepened. The Soviets and fascism became respectable in some quarters of Europe. In America, Franklin Delano Roosevelt barefacedly called his political program “liberal,” when it was fundamentally contrary to what had been taught by liberals from Adam Smith to Frederic Bastiat.”

He calls for reformulation of the tenets of the great classical economists (Hayek, Friedman, Coase, and Buchanan) to help undo the damage caused to liberalism by a century of negative criticism.

“I am averse to labels and do not much mind whether I am seen as a libertarian or an Austrian economist or a follower of the Chicago school, as long as what I hold makes sense from the point of view of truth and liberty. But I have now come to think “neo-liberalism” a useful label, for its defiant assertion that economic theory and policy must be put back at the center of the philosophy of liberty.”

In rebuttal, I write that there will be no neo-liberal reformation. New economic theory and new policies, and as well as new schemes, are coming that are based on the philosophy of authoritarianism; these will be based on regional framework agreements, as leaders meet in summits and workgroups to renounce national sovereignty and annonce regional pooled sovereignty.

Marcel Fratzscher, President of the German Institute for Economic Research (DIW Berlin) and professor of macroeconomics and finance at Humboldt University Berlin writes in European Voice Three Illusions Are Responsible For The German Public’s Growing Aversion To European Integration. The main challenge to the euro’s long-term viability is the lack of political will to implement complementary policies, such as a banking union and a credible fiscal union. Such an undertaking requires the restoration of trust among European countries. I respond, yes Jens Weidmann, President of the Deutsche Bundesbank, speaking at Harvard University, Cambridge, MA, on November, 2013, 2013, presented opposition to a banking union and a fiscal union,  when he called for The Art Of Separation especially with regard to the sovereign-bank doom loop. “Let me put it this way: Rather than for monetary policy to waltz with fiscal and financial policy, we need to erect walls between banks and sovereigns”, he said

Please consider that on October 23, Jesus Christ opened the Scroll of End Time Events, and released the Rider on the White Horse, who enabled the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48%, and to enable the currency traders to sell the World Major World Currencies, DBV, and Emerging Market Currencies, CEW, terminating the Creature Jekyll Island and birthing the Beast Regime of Revelation 13:1-4, thus pivoted the world from a policy of investment choice …  consisting of credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, nation investment, securitization of debt, dollarization, financialization of stocks and ETFs, such as corporate bonds which convert into stocks, and currency carry trade investing schemes, all of which created capital for corporations to operate and revenue for governments to operate in an environment of economic growth …  to a policy of diktat … consisting of government mandates such as ObamaCare, and consisting of debt servitude schemes such as regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, ECB banking supervision, EU fiscal rules enforced by a Fiscal Sovereign, and statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability in an environment of monetary deflation, economic deflation, and economic recession.

Soon, the utter and total death of fiat money will be the cause of worldwide recession … And will be the genesis factor of both a global financial system crash and the rise of trust in regional governance, beginning first in the Eurozone, and that eventually ten kings will come to rule in each of the world’s ten regions, as foretold in Bible prophecy of Revelation 17:12.

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